The effect of corruption control on efficiency spillovers

Authors

Levent Kutlu, The University of Texas Rio Grande ValleyFollow
Xi Mao

Document Type

Article

Publication Date

3-20-2023

Abstract

We examine the effect of corruption control on efficiency and its implications for efficiency spillovers by a stochastic frontier model. Our dataset covers 102 countries from 1996 to 2014. We find a positive relationship between corruption control and efficiency. If neighboring countries have difficulty in handling corruption, the country would be negatively affected by its neighbors' corruption through efficiency spillovers. We then compare the efficiency differences across countries for three time periods: 1996–2002, 2002–2008, and 2008–2014. On average, technical efficiencies slightly increased in the second period compared to the first period. In the third period, the efficiencies declined, particularly in China.

Comments

Copyright © Copyright © The Author(s), 2023. Published by Cambridge University Press on behalf of Millennium Economics Ltd.

Recommended Citation

Kutlu, L. and Mao, X. (2023) “The effect of corruption control on efficiency spillovers,” Journal of Institutional Economics. Cambridge University Press, pp. 1–15. doi: doi.org/10.1017/S1744137423000061

Publication Title

Journal of Institutional Economics

DOI

doi.org/10.1017/S1744137423000061