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National Interests: Priorities and Security
 

Economic and noneconomic relationship of corruption perceptions

Vol. 13, Iss. 2, FEBRUARY 2017

PDF  Article PDF Version

Received: 2 September 2016

Received in revised form: 30 September 2016

Accepted: 18 October 2016

Available online: 28 February 2017

Subject Heading: NATIONAL INTERESTS

JEL Classification: C35, D73, H11, O17, P37

Pages: 220-236

https://doi.org/10.24891/ni.13.2.220

Aistov A.V. National Research University Higher School of Economics, Nizhny Novgorod, Russian Federation
aaistov@hse.ru

Rassadovskaya A.V. National Research University Higher School of Economics, Nizhny Novgorod, Russian Federation
arassadovskaya@hse.ru

Importance It is critical to study perceptions in relation to such latent phenomena as corruption, since corrupted economic agents usually conceal their involvement in bribery. This idea comes out if we look at the difference between corruption evaluation results obtained through special-purpose surveys and analysis of real instances of corruption.
Objectives The research identifies patterns reflecting how economic and noneconomic indicators correlate with corruption perceptions. The article especially concentrates on transit economies.
Methods The research empirically evaluates a correlation of corruption perceptions and GDP per capita, subjective views on standards of living, scope of shadow economy and institutional characteristics. We also review the nexus of institutional indicators and instances of informal payments for welfare and health care services on the basis of the Russian microdata.
Results As for certain countries, we verified the hypothesis stating that shadow economy and corruption may not only complement, but rather substitute each other. The nexus was proved to disappear when shadow economy was strong in the country. Income turns out to be significant at the cross-country level, but it does not work in case of welfare services and analysis of microdata. We also mentioned the difference between informal institutions in advanced and post-socialist countries.
Relevance The findings can be useful to formulate long-term anti-corruption policies in line with effects, which institutional changes may have on personal expectations.

Keywords: corruption perceptions, institutes, Corruption Perceptions Index, transition economies

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