Democracy, Market, and Corruption: New Method and New Results
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Why is corruption more rampant in some countries than in others? The purposes of this paper are twofold: to offer a systematic accounting for observed crosscountry differences in corruption in 87 countries and to apply a new methodology,Qualitative Comparative Analysis (QCA), to studies of corruption in 12 Asian countries. The findings of cross-country analysis suggest that some authoritarian countries are less corrupt than partial democracies: the relationship between corruption and the degree of democracy is linear only in democratic countries. Contrary to rent-seeking theories, our result indicates that government interventions in economic markets itself do not increase levels of corruption. Finally, it cannot be argued that a high level of corruption is associated with a heterogeneous population, at least in democracies. The results of QCA simply state that high levels of corruption exist if (A) in countries in which non-developmental states exist, (i) the economy developed slowly (Pakistan, India, Philippines, and Bangladesh) or (ii) both non-democratic governments and heterogeneous population are present (Indonesia, Malaysia and Pakistan), or (B) both democratic governments and homogeneous population exist (Bangladesh, Korea, Taiwan, and Thailand).
Abstract
Why is corruption more rampant in some countries than in others? The purposes of this paper are twofold: to offer a systematic accounting for observed crosscountry differences in corruption in 87 countries and to apply a new methodology,Qualitative Comparative Analysis (QCA), to studies of corruption in 12 Asian countries. The findings of cross-country analysis suggest that some authoritarian countries are less corrupt than partial democracies: the relationship between corruption and the degree of democracy is linear only in democratic countries. Contrary to rent-seeking theories, our result indicates that government interventions in economic markets itself do not increase levels of corruption. Finally, it cannot be argued that a high level of corruption is associated with a heterogeneous population, at least in democracies. The results of QCA simply state that high levels of corruption exist if (A) in countries in which non-developmental states exist, (i) the economy developed slowly (Pakistan, India, Philippines, and Bangladesh) or (ii) both non-democratic governments and heterogeneous population are present (Indonesia, Malaysia and Pakistan), or (B) both democratic governments and homogeneous population exist (Bangladesh, Korea, Taiwan, and Thailand).
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