CORRUPTION IMPACT ON EAST EUROPEAN EMERGING MARKETS DEVELOPMENT
Keywords:
corruption, financial markets, market liquidity
Abstract
This paper analyzes the impact of corruption level on East European financial markets development. Financial market liquidity for 15 national markets is presented and market volume per capita is used as an indicator for market maturity. Market volume per capita values are compared to corruption perception index values, using classical logic method. Findings of the research are quite interesting and unexpected, as they show modest impact of corruption on financial market development. Results raise some questions which are discussed in the paper.
References
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Aidt, T. (2009). Corruption, institutions, and economic development. Oxford Review of Economic
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Guetat, I. (2006). The effects of corruption on growth performance of the MENA countries. Journal
of Economics and Finance, 30, 208–221.
Huang, C. J. (2012). Corruption, economic growth, and income inequality: evidence from ten
countries in Asia. World Academy of Science, Engineering and Technology, 66, 2012.
Li, S., & Wu, J. J. (2010). Why some countries thrive despite corruption: The role of trust in the
corruption-efficiency relationship. Review of International Political Economy, 17, 129–154.
Swaleheen, M. (2011). Economic growth with endogenous corruption: an empirical study. Public
Choice, 146, 23–41.
Akai, N., Horiuchi, Y., & Sakata, M. (2005). Short-run and long-run effects of corruption on economic
growth: Evidence from state-level cross-section data for the United States. Asia Pacific School of
Economics and Government, Working Papers 05-5, 1–30.
Paldam, M., & Gundlach, E. (2008). Two views on institutions and development: The grand transition
vs the primacy of institutions. Kyklos, 61, 65–100.
Shao J., Ivanov C. P., Podobnik B, & Stanley E. H. (2007). “Quantitative relations between corruption
and economic factors”, The European physical journal B. 63 (4), 547–550.
Pulok, M. H. (2010). The impact of corruption on economic development of Bangladesh:Evidence on
the basic of an extended solow model. Stockholm University. Munich Personal RePEc Archive,
MPRA Paper No. 28755.
Chen N. (2010) Securities Laws, Control of Corruption, and Corporate Liquidity: International Evidence, Corporate Governance, https://doi.org/10.1111/j.1467-8683.2010.00823.x
Jain A. (2008) Corruption: A review, Journal of Economic Surveys, 15, 71–121
Stiglitz J. E.(1993) The Role of the State in Financial Markets, The World Bank Economic Review, Vol. 7, No1, 19–52
Blackburn K., Bose N., & Haque M. E. (2005), The incidence and persistence of corruption in
economic development, Journal of Economic Dynamics & Control, 30, 2447–2467
Lambsdorff, J. G. (2007) The institutional economics of corruption and reform, Cambridge, UK,
Cambridge University Press
Brown, S. F., & Shackman, J. (2007). Corruption and related socioeconomic factors: A time series
study. Kyklos, 60, 319–347.
Aidt, T., Dutta, J., & Sena, V. (2008). Governance regimes, corruption and growth: Theory and
evidence. Journal of Comparative Economics, 36, 195–220.
Igwike, R. S., Hussain, M. E., & Noman, A. (2012). “The impact of corruption on economic
development: A panel data analysis”. SSRN Working Paper Series.
Méon, P.-G., and Sekkat, K. (2005). Does Corruption Grease or Sand the Wheels of Growth? Public
Choice, 122(1–2), 69–97.
Mendez, F., & Sepulveda, F. (2006). Corruption, growth and political regimes: Cross country evidence, European Journal of Political Economy, 22 82-98.
Heckelman, J. C., & Powell, B. (2008). Corruption and the Institutional environment for growth.
working papers 2008-6, Suffolk University.
Svensson, J. (2005). Eight questions about corruption. Journal of Economic Perspectives, 19 19–42.
Littvay, L., & Donica, A. N. P. (2006). Corruption: A Cause of Effect? Canadian Political Science
Association Conference, Toronto, Ontario, Canada.
Paiders, J. (2008) Relationship between corruption level changes and economic growth in the world
end Europe. International scientific conference: Research for Rural Development 2008, 14, Jelgava (Latvia), 21-23., May 2008.
Wei, S. J. (2000). How taxing is corruption on international investors? Review of Economics and
Statistics, 82 1–11.
Aidt, T. (2009). Corruption, institutions, and economic development. Oxford Review of Economic
Policy, 25, 271–291.
Guetat, I. (2006). The effects of corruption on growth performance of the MENA countries. Journal
of Economics and Finance, 30, 208–221.
Huang, C. J. (2012). Corruption, economic growth, and income inequality: evidence from ten
countries in Asia. World Academy of Science, Engineering and Technology, 66, 2012.
Li, S., & Wu, J. J. (2010). Why some countries thrive despite corruption: The role of trust in the
corruption-efficiency relationship. Review of International Political Economy, 17, 129–154.
Swaleheen, M. (2011). Economic growth with endogenous corruption: an empirical study. Public
Choice, 146, 23–41.
Akai, N., Horiuchi, Y., & Sakata, M. (2005). Short-run and long-run effects of corruption on economic
growth: Evidence from state-level cross-section data for the United States. Asia Pacific School of
Economics and Government, Working Papers 05-5, 1–30.
Paldam, M., & Gundlach, E. (2008). Two views on institutions and development: The grand transition
vs the primacy of institutions. Kyklos, 61, 65–100.
Shao J., Ivanov C. P., Podobnik B, & Stanley E. H. (2007). “Quantitative relations between corruption
and economic factors”, The European physical journal B. 63 (4), 547–550.
Pulok, M. H. (2010). The impact of corruption on economic development of Bangladesh:Evidence on
the basic of an extended solow model. Stockholm University. Munich Personal RePEc Archive,
MPRA Paper No. 28755.
Chen N. (2010) Securities Laws, Control of Corruption, and Corporate Liquidity: International Evidence, Corporate Governance, https://doi.org/10.1111/j.1467-8683.2010.00823.x
Published
2021/10/15
Section
Original Scientific Paper
