Sociopolitical Institutions and Corruption

Ghulam Shabbir, Abdul Farooq and Tanvir Ahmed

Abstract

This study estimated the impact of social and political institutions on corruption, and also explored whether conditional cooperation matters or not. The study has used GMM method to estimate the panel data model for Developing Eight countries. The empirical results indicate that education affect corruption negatively, whereas urbanization positively. The interaction term shows that press freedom positively impacts corruption in countries having poor democratic norms, and negatively in case of higher degree of democracy such as Indonesia and Bangladesh. Although, these empirical findings are based on only Muslim countries, but have important implications for policy makers. Economic managers should focus the nation’s educational system, democracy, and liberty of speech and media to restraint the corruption.