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dc.contributor.authorKolstad, Ivar
dc.contributor.authorWiig, Arne
dc.date.accessioned2018-01-04T08:18:49Z
dc.date.available2018-01-04T08:18:49Z
dc.date.issued2011-12-12
dc.identifieroai:www.cmi.no:4315
dc.identifier.citationBergen: Chr. Michelsen Institute (CMI Working Paper WP 2011:4) 29 p.
dc.identifier.isbn978-82-8062-420-8
dc.identifier.issn0804-3639
dc.identifier.urihttp://hdl.handle.net/11250/2474916
dc.description.abstractWhile democracy is commonly believed to reduce corruption, there are obvious endogeneity problems in measuring the impact of democracy on corruption. This paper addresses the endogeneity of democracy by exploiting the common observation that democracies seldom go to war against each other. We instrument for democracy using a dummy variable reflecting whether a country has been at war with a democracy in the period 1946-2009, while controlling for the extent to which countries have been at war in general. We find that democracy to a significant extent reduces corruption, and the effect is considerably larger than suggested by estimations not taking endogeneity into account. Democracy is hence more important in combating corruption than previous studies would suggest.
dc.language.isoeng
dc.publisherChr. Michelsen Institute
dc.relationCMI Working Paper
dc.relationWP 2011:4
dc.relation.ispartofCMI Working Paper
dc.relation.ispartofseriesCMI Working Paper WP 2011:4
dc.relation.urihttps://www.cmi.no/publications/4315-does-democracy-reduce-corruption
dc.subjectDemocracy
dc.subjectCorruption
dc.subjectConflict
dc.subjectEndogeneity
dc.subjectBangladesh
dc.titleDoes democracy reduce corruption?
dc.typeWorking paper


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