Jobs, Corruption, and Democracy: What’s the Empirical Relationship?
With the downshift in US job growth reported this morning, it’s interesting to note the relationship unemployment has with other aspects of a country’s risk profile, such as the level of corruption and democratic development.
In this very interesting – and prescriptive study – the authors consider this tripartite relationship, using our ICRG corruption data.
They estimate a linear dynamic panel-data model using data from 80 developing countries over the period 1990–2018 and found that that democracy reduces corruption.
However, the potential beneficial effect of democracy on corruption is eroded by a higher unemployment rate. The results are robust and quantitatively similar across different empirical specifications.
These results imply that emerging market countries should focus on decreasing the unemployment level so as to take advantage of democratization in their fight against corruption
(https://mpra.ub.uni-muenchen.de/107535/1/MPRA_paper_107535.pdf)
Our data drives.
Now over six million individually vetted geopolitical risk data points covering over 150 countries dating to the early 1980s.
The PRS Group: Challenging Borders, Challenging Risk
PRS INSIGHTS
Moving beyond current opinions, a seasoned look into the most pressing issues affecting geopolitical risk today.
EXPLORE INSIGHTS SUBSCRIBE TO INSIGHTS