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Information and Communication Technologies (ICTs) and Corruption Level: Empirical Evidence from Panel Data Analysis

Year 2017, Volume: 2 Issue: 6, 1 - 10, 15.10.2017
https://doi.org/10.23834/isrjournal.322734

Abstract

In recent years, there have been great
interest for solving corruption problems associated with public and private
sector. On the other hand, nowadays the rapid development of technology related
to transformation in the ICT technologies is observed from many sources in the
literature. In this process, implementations of anticorruption policies have
been helped by these technologies. In addition to this support, the empirical
analyses on relationships between ICT and corruption are still scarce. In this
regard, this paper focuses whether ICT technologies reduces corruption,
adopting univariate and multivariate models with panel data in 177 countries
for the period 2002-2012. It assumes that developments in ICT technologies of
countries determine greatly their level of corruption in terms of public
institutions. Moreover, we employ four ICT indicators, including internet, cell
phone, computer and fixed broadband and two corruption indexes. The results
indicate that all of these technologies cause a decrease in the two corruption
indexes. On the other hand, we also include four more instrumental variables to
check the robust of our models. In this regard, the results showed that trade
openness and FDI have a negative and statistically significant relationship
with the corruption while poverty and inflation have a positive, statistically
significant effect on the corruption.     

References

  • Akça, H., Ata, A. Y., & Karaca, C. (2012). Inflation and Corruption Relationship: Evidence from Panel Data in Developed and Developing Countries. International Journal of Economics and Financial Issues, 2(3), 281-295.
  • Bai, J., Jayachandran, S., Malesky, E. J., & Olken, B. A. (2013). Does economic growth reduce corruption? Theory and evidence from Vietnam (No. w19483). National Bureau of Economic Research.
  • Bardhan, P. (1997). Corruption and development: a review of issues. Journal of economic literature, 35(3), 1320-1346.
  • Bertot, J. C., Jaeger, P. T., & Grimes, J. M. (2010). Using ICTs to create a culture of transparency: E-government and social media as openness and anti-corruption tools for societies. Government information quarterly, 27(3), 264-271.
  • Bonaglia, F., de Macedo, J.B., Bussolo, M., 2001. How globalization improves governance. OECD Technical Papers, vol. 181.
  • Borensztein, E., De Gregorio, J., & Lee, J. W. (1998). How does foreign direct investment affect economic growth?. Journal of international Economics, 45(1), 115-135.
  • Braun, M., & Di Tella, R. (2004). Inflation, Inflation Variability, and Corruption. Economics and Politics, 16(1), 77-100.
  • Charoensukmongkol, P., & Moqbel, M. (2014). Does investment in ICT curb or create more corruption? A cross-country analysis. Public Organization Review, 14(1), 51-63.
  • Elbahnasawy, N. G. (2014). E-government, internet adoption, and corruption: An empirical investigation. World Development, 57, 114-126.
  • Elbahnasawy, N. G., & Revier, C. F. (2012). The determinants of corruption: Cross‐country‐panel‐data analysis. The Developing Economies, 50(4), 311-333.
  • Evrensel, A. Y. (2010). Institutional and economic determinants of corruption: a cross-section analysis. Applied Economics Letters, 17(6), 551-554.
  • Fiorino, N., & Galli, E. (2010). An analysis of the determinants of corruption: Evidence from the Italian regions. POLIS Working Papers,(171).
  • Iwasaki, I., & Suzuki, T. (2012). The determinants of corruption in transition economies. Economics Letters, 114(1), 54-60.
  • Koyuncu, C., & Bhattacharyya, G. (2007). Predicting Corrupt Practices in the Public Sector for 23 OECD Countries. Applied Econometrics and International Development, 7(1).
  • Larraín, B., & Tavares, J. (2004). Does foreign direct investment decrease corruption?. Cuadernos de economía, 41(123), 199-215.
  • Li, X., & Liu, X. (2005). Foreign direct investment and economic growth: an increasingly endogenous relationship. World development, 33(3), 393-407.
  • Lio, M. C., Liu, M. C., & Ou, Y. P. (2011). Can the internet reduce corruption? A cross-country study based on dynamic panel data models. Government Information Quarterly, 28(1), 47-53.
  • Mauro, P. (1995). Corruption and growth. The quarterly journal of economics, 681-712.
  • Mistry, J. J., & Jalal, A. (2012). An empirical analysis of the relationship between e-government and corruption. The International journal of digital accounting research, 12(18), 145-176.
  • Robertson, C. J., & Watson, A. (2004). Corruption and change: The impact of foreign direct investment. Strategic management journal, 25(4), 385-396.
  • Serra, D. (2006). Empirical determinants of corruption: A sensitivity analysis. Public Choice, 126(1-2), 225-256.
  • Shim, D. C. & Eom, T. H. (2009). Anticorruption effects of information communication and technology (ICT) and social capital. International review of administrative sciences, 75(1), 99-116.
  • Topal, M. H. & Ünver, M. (2016). Yolsuzluğun Belirleyicileri: Kırılgan Ekonomiler İçin Panel Eş-bütünleşme Analizi, Balkan ve Yakın Doğu Sosyal Bilimler Dergisi, 2 (2), 58-68.
  • Torrez, J. (2002). The effect of openness on corruption. Journal of International Trade & Economic Development, 11(4), 387-403.
  • Türedi, S. & Altıner, A. (2016). Economic and Political Factors Affecting Corruption in Developing Countries. Int. J. Eco. Res, 7(1), 104-120.
  • Viisimaa, P. (2008). Poverty and Corruption (Vol. 2, p. 2008). Transparency International Working Paper.

Bilgi ve İletişim Teknolojileri (BIT) ve Yolsuzluk Düzeyi: Panel Veri Analizinden Ampirik Kanıt

Year 2017, Volume: 2 Issue: 6, 1 - 10, 15.10.2017
https://doi.org/10.23834/isrjournal.322734

Abstract

Son yıllarda literatürde kamu ve özel
sektörle ilişkili yolsuzluk problemlerinin çözümü üzerine yapılan çalışmalara
olan ilginin arttığı görülmektedir. Diğer taraftan; günümüzde BİT’lerdeki
(Bilgi İletişim Teknolojileri) dönüşüm ile ilişkili teknolojideki hızlı gelişme
literatürde yapılan çalışmalardan gözlemlenmektedir. Bu süreçte, bu tür
teknolojiler yolsuzluğa karşı uygulanan politikalara destek olmuştur. Bu
desteğe ek olarak, BİT ve yolsuzluk arasındaki ilişkiyi inceleyen ampirik
çalışmaların hala az bulunur olduğu görülmektedir. Bu bağlamda; 2002-2012
dönemi için 177 ülkede tek değişkenli ve çok değişkenli panel veri analizleri
kullanan bu çalışma BİT teknolojilerinin, bir ülkenin yolsuzluk düzeyini
azaltıp azaltmadığı konusuna odaklanmıştır. Çalışma, ülkelerin BİT
teknolojilerindeki gelişmelerin kamu kurumları açısından yolsuzluk seviyesini
belirlediğini varsaymaktadır. Ayrıca çalışma; internet, cep telefonu,
bilgisayar ve sabit genişbandın dahil olduğu dört BİT göstergesi ve iki
yolsuzluk endeksini modellerinde kullanmıştır. Analiz sonuçlarına göre;
modellere dahil edilen BİT teknolojilerinin tüm çeşitlerinin iki yolsuzluk
endeksinde bir azalışa neden olduğu gözlenmiştir. Diğer taraftan; çalışmadaki
modellerin sağlamlığını kontrol etmek için dört araç değişken daha modellere
dahil edilmiştir. Bu bağlamda; yoksulluk ve enflasyon değişkenlerinin yolsuzluk
üzerinde istatistiksel olarak anlamlı pozitif yönde etkisi varken; ticari
açıklık ve doğrudan yabancı sermaye yatırımları değişkenlerinin yolsuzluk üzerinde
istatistiksel olarak anlamlı negatif yönde bir etkisinin olduğu sonucuna
ulaşılmıştır. 

References

  • Akça, H., Ata, A. Y., & Karaca, C. (2012). Inflation and Corruption Relationship: Evidence from Panel Data in Developed and Developing Countries. International Journal of Economics and Financial Issues, 2(3), 281-295.
  • Bai, J., Jayachandran, S., Malesky, E. J., & Olken, B. A. (2013). Does economic growth reduce corruption? Theory and evidence from Vietnam (No. w19483). National Bureau of Economic Research.
  • Bardhan, P. (1997). Corruption and development: a review of issues. Journal of economic literature, 35(3), 1320-1346.
  • Bertot, J. C., Jaeger, P. T., & Grimes, J. M. (2010). Using ICTs to create a culture of transparency: E-government and social media as openness and anti-corruption tools for societies. Government information quarterly, 27(3), 264-271.
  • Bonaglia, F., de Macedo, J.B., Bussolo, M., 2001. How globalization improves governance. OECD Technical Papers, vol. 181.
  • Borensztein, E., De Gregorio, J., & Lee, J. W. (1998). How does foreign direct investment affect economic growth?. Journal of international Economics, 45(1), 115-135.
  • Braun, M., & Di Tella, R. (2004). Inflation, Inflation Variability, and Corruption. Economics and Politics, 16(1), 77-100.
  • Charoensukmongkol, P., & Moqbel, M. (2014). Does investment in ICT curb or create more corruption? A cross-country analysis. Public Organization Review, 14(1), 51-63.
  • Elbahnasawy, N. G. (2014). E-government, internet adoption, and corruption: An empirical investigation. World Development, 57, 114-126.
  • Elbahnasawy, N. G., & Revier, C. F. (2012). The determinants of corruption: Cross‐country‐panel‐data analysis. The Developing Economies, 50(4), 311-333.
  • Evrensel, A. Y. (2010). Institutional and economic determinants of corruption: a cross-section analysis. Applied Economics Letters, 17(6), 551-554.
  • Fiorino, N., & Galli, E. (2010). An analysis of the determinants of corruption: Evidence from the Italian regions. POLIS Working Papers,(171).
  • Iwasaki, I., & Suzuki, T. (2012). The determinants of corruption in transition economies. Economics Letters, 114(1), 54-60.
  • Koyuncu, C., & Bhattacharyya, G. (2007). Predicting Corrupt Practices in the Public Sector for 23 OECD Countries. Applied Econometrics and International Development, 7(1).
  • Larraín, B., & Tavares, J. (2004). Does foreign direct investment decrease corruption?. Cuadernos de economía, 41(123), 199-215.
  • Li, X., & Liu, X. (2005). Foreign direct investment and economic growth: an increasingly endogenous relationship. World development, 33(3), 393-407.
  • Lio, M. C., Liu, M. C., & Ou, Y. P. (2011). Can the internet reduce corruption? A cross-country study based on dynamic panel data models. Government Information Quarterly, 28(1), 47-53.
  • Mauro, P. (1995). Corruption and growth. The quarterly journal of economics, 681-712.
  • Mistry, J. J., & Jalal, A. (2012). An empirical analysis of the relationship between e-government and corruption. The International journal of digital accounting research, 12(18), 145-176.
  • Robertson, C. J., & Watson, A. (2004). Corruption and change: The impact of foreign direct investment. Strategic management journal, 25(4), 385-396.
  • Serra, D. (2006). Empirical determinants of corruption: A sensitivity analysis. Public Choice, 126(1-2), 225-256.
  • Shim, D. C. & Eom, T. H. (2009). Anticorruption effects of information communication and technology (ICT) and social capital. International review of administrative sciences, 75(1), 99-116.
  • Topal, M. H. & Ünver, M. (2016). Yolsuzluğun Belirleyicileri: Kırılgan Ekonomiler İçin Panel Eş-bütünleşme Analizi, Balkan ve Yakın Doğu Sosyal Bilimler Dergisi, 2 (2), 58-68.
  • Torrez, J. (2002). The effect of openness on corruption. Journal of International Trade & Economic Development, 11(4), 387-403.
  • Türedi, S. & Altıner, A. (2016). Economic and Political Factors Affecting Corruption in Developing Countries. Int. J. Eco. Res, 7(1), 104-120.
  • Viisimaa, P. (2008). Poverty and Corruption (Vol. 2, p. 2008). Transparency International Working Paper.
There are 26 citations in total.

Details

Journal Section Articles
Authors

Cuneyt Koyuncu

Mustafa Ünver

Publication Date October 15, 2017
Submission Date June 20, 2017
Published in Issue Year 2017 Volume: 2 Issue: 6

Cite

APA Koyuncu, C., & Ünver, M. (2017). Information and Communication Technologies (ICTs) and Corruption Level: Empirical Evidence from Panel Data Analysis. The Journal of International Scientific Researches, 2(6), 1-10. https://doi.org/10.23834/isrjournal.322734