ACCOUNTABILITY AND CORRUPTION: POLITICAL INSTITUTIONS MATTER

TLDR

Empirical studies on how political institutions affect corruption are scarce, despite theoretical emphasis on their importance. The study examines how political institutions that enhance accountability influence corruption across countries. Using a cross‑country panel analysis, the authors assess the impact of accountability‑enhancing political institutions on corruption. Political institutions—democracy, parliamentary systems, stability, and press freedom—significantly reduce corruption, confirming their causal role, whereas openness and legal tradition effects disappear when political variables are considered.

Abstract

This study uses a cross-country panel to examine the determinants of corruption, paying particular attention to political institutions that increase accountability. Even though the theoretical literature has stressed the importance of political institutions in determining corruption, the empirical literature is relatively scarce. Our results confirm the role of political institutions in determining the prevalence of corruption. Democracies, parliamentary systems, political stability, and freedom of press are all associated with lower corruption. Additionally, common results of the previous empirical literature, related to openness and legal tradition, do not hold once political variables are taken into account.