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A Conceptual Framework for Constructing a Corruption Diffusion Index

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Abstract

In this paper, we propose a conceptual framework for constructing a diffusion index of changes in overall perceptions with respect to corruption. The corruption diffusion index we construct lies between 0 (the greatest overall deterioration in corruption perceptions) and 100 (the greatest overall improvement in corruption perceptions) with 50 (no change in corruption perceptions) as the critical reference. The proposed methodology is applied to the 2010/2011 global corruption barometer survey data. Possible refinements of the proposed methodology to capture the potentially multi-dimensional nature of corruption and the practical challenges associated with the empirical implementation are discussed.

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Notes

  1. One example is the surveys used in the construction of the Bribe Payers Index (BPI). For an overview of BPI, see http://www.transparency.org/research/bpi/overview.

  2. For further details about the 2012 CPI and earlier CPIs see http://www.transparency.org/research/cpi/overview.

  3. For further details in the nature of the GCB questions and the methodology see Transparency International’s website http://www.transparency.org/research/gcb/overview.

  4. The reports are available at the ISM website http://www.ism.ws/ISMReport/?navItemNumber=22442. A similar methodology is also being used to construct PMIs for several other countries.

  5. For example, the World Bank’s Country Policy and Institutional Analysis (CPIA) measure of corruption also considers these three dimensions. The corruption measure constructed by the World Bank ranges from 1 (low corruption) to 6 (high corruption). For further details, see the World Bank Group, CPIA database at http://data.worldbank.org/indicator/IQ.CPA.TRAN.XQ.

  6. For further details about the principal components weighting schemes for composite indicators see, for example, Cho and Ogwang (2006, 2007).

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Authors and Affiliations

  1. Department of Economics, Brock University, 500 Glenridge Avenue, St. Catharines, ON, L2S 3A1, Canada

    Tomson Ogwang

  2. Goodman School of Business, Brock University, 500 Glenridge Avenue, St. Catharines, ON, L2S 3A1, Canada

    Danny I. Cho

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  1. Tomson Ogwang
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  2. Danny I. Cho
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Correspondence to Danny I. Cho.

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Ogwang, T., Cho, D.I. A Conceptual Framework for Constructing a Corruption Diffusion Index. J Bus Ethics 125, 1–9 (2014). https://doi.org/10.1007/s10551-013-1904-y

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  • DOI: https://doi.org/10.1007/s10551-013-1904-y

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