Are larger countries really more corrupt?

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Are larger countries really more corrupt?, Volume 1

Author:	Knack, Stephen; Azfar, Omar;	Collection Title:	Policy, Research working paper ; no. WPS 2470
Date Stored:	2000/12/15	Document Date:	2000/11/30
Document Type:	Policy Research Working Paper	Language:	English
Major Sector:	(Historic)Multisector	Report Number:	WPS2470
Sub Sectors:	Non-Sector Specific	SubTopics:	Governance Indicators; Public Sector Corruption & Anticorruption Measures; Poverty Monitoring & Analysis; National Governance; Corruption & Anticorruption Law
Volume No:	1

Summary: Several authors claim to provide evidence that government corruption is less severe in small than in large countries. The authors demonstrate that this relationship is an artifact of sample selection. Most corruption indicators provide ratings only for the countries in which multi-national investors have the greatest interest. These tend to include almost all large nations but, among small nations, only those that are well governed. The authors find that the relationship between corruption and country size disappears when one uses either a new corruption indicator with substantially increased country coverage or an alternative corruption indicator that covers all World Bank borrowers without regard to country size. They also show that the relationship between corruption and trade intensity--a variable strongly related to population--disappears when samples less subject to selection bias are used.


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