AN EMPIRICAL INVESTIGATION ON THE DETERMINANTS OF CORRUPTION

Abstract

The aim of this study is to investigate the factors that determine the level of corruption in 44 countries in the period 1982-1995. The variables that are considered to determine the level of corruption are as follows: Rule of law, bureaucratic quality, government expenditure as a share of gross domestic product, urban population growth rate, share of wages and salaries in total government expenditures and inflation. In order to analyze the relationship between corruption and independent variables that are mentioned above, we used ‘Random Effect Ordered Probit Model’. As a result among these factors rule of law, bureaucratic quality, government expenditure as a share of gross domestic product and urban population growth rate were found to be statistically significant determinants of corruption. In this respect, corruption is influenced by the rule of law, bureaucratic quality and government expenditure as a share of gross domestic product positively, while it is influenced by urban population growth negatively