The Effect of the Government Intervention in Economy on Corruption

Abstract

The corruption is a complex and generalized phenomenon all over the world, with cultural, social, psychological, political and economical dimensions. The defining and the studying of the phenomenon are going through the most different thinking filters known in the specialized literature: social-cultural, political, administrative and economic. The article’s aim is to quantify and analyze the relationship between corruption and political, administrative and economic determinants factors, through a regressive "pool data" model. The sample includes 135 countries of the world, from all continents, with different degrees of economic development and political-administrative structures, for the period 1996-2008. What is interesting is that, the study shows the distortion into the government intervention function in the economy, seen as a significant proliferation factor for the corruption phenomenon. This connection has different intensity, as the state is developed, developing or in transition. Moreover, there is a number of unobserved factors, which emphasizes or temperate in temporal approach the relationship between corruption - political, administrative and economic determinants factors.