Who benefits from corruption; the private individual or the public purse?

Vincent Tawiah, Abdulrasheed Zakari, James Xede

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

In this paper, we examine the impact of corruption on wealth distribution between the public purse and private individuals conditioned on the institutional quality of a country. We used panel data on 83 countries from 2000 to 2017. Our results indicate that corruption helps private individuals to accumulate more wealth at the expense of the public purse in countries with low-quality institutions. However, corruption increases the wealth in the public purse in countries with high-quality institutions. Our results, therefore, imply that the institutional quality of a country significantly shapes how corruption affects the wealth of private individuals and the public purse. The results are pronounced in developing countries and robust to alternative measurements and endogeneity test.

Original languageEnglish
Pages (from-to)2900-2914
Number of pages15
JournalInternational Journal of Finance and Economics
Volume28
Issue number3
DOIs
Publication statusPublished - Jul 2023
Externally publishedYes

Keywords

  • corruption
  • institutional quality
  • private individual
  • public purse
  • wealth accumulation

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