Effect of corruption on the HDI Human Development Index: new empirical evidence using panel data

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Published: nov. 9, 2020
Keywords:
Panel data, Corruption, Human development

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Belén Jumbo
Universidad Nacional de Loja
Manuel Pambi
Universidad Nacional de Loja
Patricia Guerrero-Riofrío
Universidad Nacional de Loja

Abstract

The objective of this research is to answer the question Does corruption affect the humandevelopment index? We use panel data for 55 countries during 1995-2017. The dependentvariable is the Human Development Index (HDI) and the independent variable is theGovernment Integrity Index as a measure of corruption. In addition, the following were includedas control variables: public spending, schooling, and gross capital formation as factorsthat affect the HDI.We classify countries into three groups: high income (HIC), uppermiddle income (MHIC) and lower middle income (MLIC). The results show that the effectof the integrity of the government on the HDI is statistically significant and positive, bothat the global level and for the HICs and MHICs. Likewise, the integrity of the governmentmaintains its positive and statistically significant effect for the global panel, in the HIC andMHIC. Furthermore, in MLICs the effect is not significant. Additionally, the case of LatinAmerica is analyzed, the results show that there is a positive and statistically significantrelationship. It is recommended that the relevant agencies should formulate policies thatallow for more rigorous control by establishing legal and institutional frameworks againstcorruption that include strong punitive and law enforcement measures.

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How to Cite
Jumbo, B., Pambi, M., & Guerrero-Riofrío, P. (2020). Effect of corruption on the HDI Human Development Index: new empirical evidence using panel data. Revista Económica, 8(1), 19–28. Retrieved from https://revistas.unl.edu.ec/index.php/economica/article/view/838
Issue
Vol. 8 No. 1 (2020): Revista Económica vol 8 (Enero-Junio 2020)
Section
RESEARCH ARTICLES
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