Corruption and Social Capital

Christian Bjørnskov

No 03-13, Working Papers from University of Aarhus, Aarhus School of Business, Department of Economics

Abstract: I examine the causal relation between social capital and corruption. A simple model illustrates potential mechanisms and yields testable implications, which I estimate in a sample of European countries. The estimated effect of social capital on corruption is found to be robust to the inclusion of a number of other variables and supplementing the sample with slightly older data from non-European countries. The evidence of the reverse causal direction is weak. I suggest that it is possible to build social capital through investing in education, interest in society and some level of income redistribution, which in turn reduces corruption.

Keywords: Corruption; Illegal behavior; Rent-seeking; Social capital (search for similar items in EconPapers)
JEL-codes: D72 K42 Z13 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2003-01-07
New Economics Papers: this item is included in nep-law and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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