AGGREGATING GOVERNANCE INDICATORS
PER CAPITA INCOMES
CORRUPTION IN GOVERNMENT
PER CAPITA INCOME
CORRUPTION PERCEPTIONS INDEX
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AbstractSeveral authors claim to provide evidence that government corruption is less severe in small than in large countries. The authors demonstrate that this relationship is an artifact of sample selection. Most corruption indicators provide ratings only for the countries in which multi-national investors have the greatest interest. These tend to include almost all large nations but, among small nations, only those that are well governed. The authors find that the relationship between corruption and country size disappears when one uses either a new corruption indicator with substantially increased country coverage or an alternative corruption indicator that covers all World Bank borrowers without regard to country size. They also show that the relationship between corruption and trade intensity--a variable strongly related to population--disappears when samples less subject to selection bias are used.
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Growth without GovernanceKraay, Aart; Kaufmann, Daniel (World Bank, Washington, DC, 2014-08-01)It is well known that there is a strong positive correlation between per capita incomes and the quality of governance across countries. the authors propose an empirical strategy that allows separation of this correlation into (1) a strong positive causal effect running from better governance to higher per capita incomes, and, perhaps surprisingly at first, (2) a weak and even negative causal effect running in the opposite direction from per capita incomes to governance. The first result confirms existing evidence on the importance of good governance for economic development. The second result is new and suggests the absence of a "virtuous circle" in which higher incomes lead to further improvements in governance. This motivates the authors' choice of title, "Growth Without Governance." They document this evidence using a newly updated set of worldwide governance-indicators covering 175 countries for the period 2000-01, and use the results to interpret the relationship between incomes and governance focusing on the Latin America and Caribbean region-within a worldwide empirical context. Finally, the authors speculate about the potential importance of elite influence and state capture in accounting for the surprising negative effects of per capita incomes on governance, present some evidence on such capture in some Latin American countries, and suggest priorities for actions to improve governance when such pernicious elite influence shapes public policy.
Governance Matters III : Governance Indicators for 1996, 1998, 2000, and 2002Kaufmann, Daniel; Kraay, Aart; Mastruzzi, Massimo (Washington, DC: World Bank, 2014-02-24)This article presents estimates of six dimensions of governance for 199 countries and territories for 1996, 1998, 2000, and 2002 developed in the context of an ongoing project to measure governance across countries. Section one describes the data used in developing this round of the governance indicators, which include several new sources. Data sources used in the earlier studies were updated forward to 2002 and backward to 1996, and previously estimated indicators for 1998 and 2000were revised to reflect the new data. The aggregation procedure, described in section two, provides not only estimates of governance for each country but also measures of the precision or reliability of these estimates. Although the new data have improved the precision of the governance indicators, the margins of error remain large relative to the units in which governance is measured, so that comparisons across countries and especially over time should be made with caution.
Fighting Corruption in East Asia : Solutions from the Private SectorBerenbeim, Ronald E.; Arvis, Jean-Francois (Washington, DC: World Bank, 2003-08)The critical need for private sector involvement in the fight against corruption is now an accepted fact, particularly in East Asia, where there is a buoyant private sector and where corruption has often been equated with cronyism. Cutting off corruption's supply side is a vital step in limiting the economic damage inflicted by corrupt practices. Despite the importance of private sector efforts in this regard, little attention has been paid to company anticorruption programs and to trying to learn from company experience. This book, which is based on research cosponsored by the World Bank and the Conference Board, provides detailed documentation of the efforts of Western and Asian companies to develop good standards of business conduct in their East Asian operations. It provides evidence that a common set of principles for resisting corruption can be established notwithstanding the rich cultural diversity and ownership structure of firms based in that region.