Corruption and Democracy

Most models and empirical tests of the relationship between corruption and democracy assume corruption falls as democracy matures. Yet recent theoretical developments and case evidence suggest an inverted U relationship between the two, although so far no one has tested for this relationship. By drawing on a panel data set covering a large number of countries between 1982–1997, substantial empirical support is found for an inverted U relationship between the durability (age) of democracy and corruption. Fortunately, the turning point in corruption occurs rather early in the life of new democracies – between 10–12 years.