Working Papers,
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

JEL-codes: D72; K42; Z13

31 pages, January 7, 2003

Full text files

03-13_chbj.pdf  

Download statistics

• University of Aarhus, Aarhus School of Business, Department of Economics
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Helle Vinbaek Stenholt ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:aareco:2003_013This page generated on 2024-09-13 22:14:08.