Are larger countries really more corrupt?

Author(s) : Knack, Stephen; Azfar, Omar

Organization : World Bank. Development Research Group. Regulation and Competition Policy

Imprint : Washington, D.C., World Bank, 2000

Collation :

24 p.

Series : Policy research working paper, 2470

Notes :

Incl. bibl.

Several authors claim to provide evidence that government corruption is less severe in small rather than large countries. Knack and Azfar demonstrate in this book that this relationship is an artifact of sample selection. Most corruption indicators provide ratings only for the countries in which multi-national investors have the greatest interest. These tend to include almost all large nations but, among small nations, only those that are well governed. The authors find that the relationship between corruption and country size disappears when one uses either a new corruption indicator with substantially increased country coverage or an alternative corruption indicator that covers all World Bank borrowers without regard to country size. They also show that the relationship between corruption and trade intensity - a variable strongly related to population - disappears when samples less subject to selection bias are used.

  • Corruption, Economic and social development, Educational management, Central administration
  • International