Many variables have been proposed by past studies as significant determinants of corruption. This paper asks if their estimated impact on corruption is robust to alteration of the information set. A “Global Sensitivity Analysis”, based on the Leamer's Extreme-Bounds Analysis gives a clear answer: five variables are robustly related to corruption. Corruption is lower in richer countries, where democratic institutions have been preserved for a long continuous period, and the population is mainly Protestant. Corruption is instead higher where political instability is a major problem. Finally, a country's colonial heritage appears to be a significant determinant of present corruption.
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Serra, D. Empirical determinants of corruption: A sensitivity analysis. Public Choice 126, 225–256 (2006). https://doi.org/10.1007/s11127-006-0286-4
- Sensitivity Analysis
- Public Finance
- Past Study
- Significant Determinant
- Rich Country