Geographical spread of corruption : Policies, institutions and cross-country economic interaction. Part I: Issues, theory

Abstract

The international aspects of corruption have received considerable attention in both research and policy: What determines whether a country is highly corrupt or not? Most research has sought to answer this question by considering each country as reflecting the same kind of mechanism explaining both the high and low outcomes. In this paper some of the theoretical explanations suggested in the literature are reviewed at the same time as it suggests how the question needs to be rephrased if each country’s corruption rate is influenced by an internationally open economic system.