Pros and cons of corruption to income inequality: an extensive literature survey

Year 2023, Volume: 16 Issue: 2, 582 - 600, 31.12.2023

Abdulkadir Bulut Tarkan Çavuşoğlu

https://doi.org/10.17218/hititsbd.1330997

Abstract

Corruption, a universal concept with deep historical roots, permeates societies and has varying implications on the economies. This study reviews the existing literature on corruption, with a particular focus on how corruption shapes income inequality, using an analogy of sand- versus grease-the-wheels hypotheses to explore the positive and negative aspects of corruption. Our aim is to contribute to the corruption literature by presenting theoretical and empirical insights in a clear and traceable manner. Previous studies on the relationship between corruption and income inequality have produced mixed results, which can be attributed to variations in data and methodologies. Some studies show positive associations between corruption and income inequality, while others show negative associations, echoing the controversy surrounding the sand- and grease-the-wheels hypotheses. However, there is also scant research suggesting a non-linear relationship between corruption and income inequality, characterized by an inverted U-shaped pattern. All of these diverse findings have important implications for policymakers, emphasizing the need for comprehensive reforms that address corruption and simultaneously tackle the immediate challenges faced by low-income individuals during the transitional period. In conclusion, this study systematically discusses the implications of these findings for policymakers and researchers, highlighting the relevance of this research for shaping effective policies and further investigations in this field.

Keywords

Corruption, Income Inequality, Income Distribution

Yolsuzluğun gelir eşitsizliği üzerindeki olumlu ve olumsuz etkileri: kapsamlı bir literatür taraması

Abstract

Derin tarihsel köklere sahip evrensel bir kavram olan yolsuzluk, toplumlara nüfuz etmekte ve ekonomiler üzerinde çeşitli etkilere sahip olmaktadır. Bu çalışma “çarkları aşındırma” (sand-the-wheels) ve "çarkları yağlama" (grease-the-wheels) hipotezlerine dayalı bir analoji ile yolsuzluğun gelir dağılımı üzerindeki olumlu ve olumsuz etkilerinin ayrımına odaklanarak yolsuzluk literatürünü incelemektedir. Amacımız, teorik ve ampirik çıkarımları açık ve takip edilebilir bir çerçevede sunarak yolsuzluk literatürüne katkıda bulunmaktır. Yolsuzluk ve gelir eşitsizliği arasındaki ilişki üzerine yapılan önceki çalışmalar, veri ve metodolojilerdeki farklılıklara atfedilebilecek karmaşık sonuçlar ortaya koymaktadır. Bu çalışmalarda, yolsuzluk ve gelir eşitsizliği arasında hem pozitif hem de negatif ilişkilerin olduğu bulunmuştur. Nitekim bu durum, "çarkları aşındırma" ve "çarkları yağlama" hipotezlerini çevreleyen tartışmaları yansıtmaktadır. Bununla birlikte, yolsuzluk ve gelir eşitsizliği arasında ters U yapısına sahip doğrusal olmayan bir ilişki olduğunu öne süren sınırlı sayıda çalışmalar da bulunmaktadır. Tüm bu farklı bulgular yolsuzlukla mücadele ederken aynı zamanda geçiş döneminde düşük gelirli bireylerin karşılaştığı kısa vadeli zorlukları ele alan kapsamlı reformlara duyulan ihtiyacı vurgulamaktadır. Sonuç olarak, bu çalışma politika yapıcılar ve araştırmacılar için bu bulguların çıkarımlarını sistematik olarak tartışmak suretiyle etkili politikaların şekillendirilmesi ve bu alanda daha fazla araştırma yapılması hususunda bu çalışmanın önemini ortaya koymaktadır.

Keywords

Yolsuzluk, Gelir Eşitsizliği, Gelir Dağılımı

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