IS POLITICAL ENVIRONMENT A BREEDING GROUND FOR PUBLIC SECTOR CORRUPTION? EVIDENCE FROM A CROSS-COUNTRY ANALYSIS

Authors

  • Ajantha Sisira Kumara Department of Public Administration, Faculty of Management Studies and Commerce, University of Sri Jayewardenepura

Abstract

This study employs the instrumental variable two-stage least squares regression approach for the data for 121 countries to explore the impact of a country’s political environment on its level of corruption. The study provides strong evidence that a higher degree of rule of law, press freedom, readiness and capacity to handle e-governance practices, and urbanization are associated with a lower level of public sector corruption across all 121 countries. The colonial dummies and having a presidential government are found to be valid instruments for rule of law in addressing the issue of endogeniety embedded in it. Further, to a certain degree, landlocked countries are relatively more corrupt than coastal countries. Finally, policy implications are discussed based on the findings of the study.
Keywords: Corruption, Political Environment, Endogeniety, Public Sector

Author Biography

Ajantha Sisira Kumara, Department of Public Administration, Faculty of Management Studies and Commerce, University of Sri Jayewardenepura

Department of Public Administration, Faculty of Management Studies and Commerce, University of Sri Jayewardenepura

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Published

2019-03-18

Issue

Vol. 5 (2014)

Section

Articles