Corruption And Financial Intermediation In A Panel Of Regions: Cross-Border Effects Of Corruption
The importance of financial market reforms in combating corruption has been highlighted in the theoretical literature but has not been systemically tested empirically. In this paper, the authors provide a first pass at testing this relationship using both linear and non-monotonic forms of the relationship between corruption and financial intermediation. The paper finds a negative and statistically significant impact of financial intermediation on corruption. In recent years, international organizations such as the World Bank, IMF and UNO have set the elimination of corruption as their prime goal. Additionally, regional organizations and domestic governments have advocated and devised anti corruption policies.