Public Finance Quarterly Archive Articles

Corruption and Financial Development

14:05, június 06, 2020.

Evidence from Eastern Europe and Central Asia Countries



İbrahim Halil Ekşi
associate professor,
University Of Gaziantep, Turkey

Berna Doğan
research assistant,
University Of Gaziantep, Turkey

Published in: Public Finance Quarterly 2020/2. (p. 196-209.)



Summary: Studying the relation between corruption perception and financial markets and examining its consequences for the financial system have attracted many researchers in recent years. To understand the effect of it’s to financial markets is important for especially emerging countries. This paper examined the impact of Corruption Perception Index (CPI), government size, openness, and GDP on the financial development using the Generalized Method of Moment (GMM) approach of 19 Eastern Europe and Central Asia countries for the period 2012 to 2017 as yearly dates. Our findings suggest that there is not a relationship between the level of corruption perception and financial development.

Keywords: corruption perception index, financial development, GMM

JEL codes: G15, G18, G19

DOI: https://doi.org/10.35551/PFQ_2020_2_3 



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