Moderation of the Relationship Between Size of Government and Corruption by Democracy

Previous studies on the effect of government size on corruption have produced mixed results. In an attempt to explain these ambiguous results, this study investigates the effect of government size on corruption by taking into account the role of the democracy in each country. Using static and dynami...

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Bibliographic Details
Published in:Journal of the knowledge economy 2018-12, Vol.9 (4), p.1210-1223
Main Authors: Baklouti, Nedra, Boujelbene, Younes
Format: Article
Language:English
Subjects:
Corruption
Democracy
Economic Policy
Economics
Economics and Finance
Entrepreneurship
Government
R & D/Technology Policy
Size
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Summary:Previous studies on the effect of government size on corruption have produced mixed results. In an attempt to explain these ambiguous results, this study investigates the effect of government size on corruption by taking into account the role of the democracy in each country. Using static and dynamic panel data method for a panel of 12 MENA countries and 9 countries belonging to Western Europe during the period 1998–2011, the estimation results indicate that an increase in government size can lead to a decrease in corruption if the democracy level is sufficiently high and, in contrast, can lead to an increase in corruption if it is too low.
ISSN:1868-7865
1868-7873
DOI:10.1007/s13132-016-0410-8