Analysing spatial spillovers in corruption: A dynamic spatial panel data approach
Résumé
Previous studies on the determinants of corruption have seldom addressed cross-border spillovers of corruption in a panel data setting. In this paper, we first propose a theoretical model of spatial corruption spillover based on network analysis. Then, we analyse spatial spillovers in corruption using a dynamic spatial panel approach. The results indicate that corruption not only exhibits spatial spillovers but also a persistent effect over time. More importantly, increase of income per capita, economic freedom, and percentage of women in the parliaments have a long-term effect on the perceived levels of corruption. Policies and programmes aiming at abating corruption must take into consideration those results.