Does corruption throw sand into or grease the wheels of financial sector development?

Cooray, Arusha, and Schneider, Friedrich (2018) Does corruption throw sand into or grease the wheels of financial sector development? Public Choice, 177. pp. 111-133.

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This paper examines the relationship between corruption and financial sector development in 106 countries. Using dummy variables to capture different levels of corruption, and interaction terms to see if financial sector development depends on institutional structures, we find evidence to support the ‘sand the wheels’ hypothesis. The results suggest that a decline in corruption is associated with higher levels of financial sector development.

Item ID: 69178
Item Type: Article (Research - C1)
ISSN: 1573-7101
Keywords: Corruption, Financial sector, Panel data
Copyright Information: © The Author(s) 2018. This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (, which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Date Deposited: 29 Sep 2021 01:19
FoR Codes: 38 ECONOMICS > 3801 Applied economics > 380107 Financial economics @ 50%
38 ECONOMICS > 3801 Applied economics > 380113 Public economics - public choice @ 50%
SEO Codes: 15 ECONOMIC FRAMEWORK > 1502 Macroeconomics > 150299 Macroeconomics not elsewhere classified @ 100%
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