Determinants of Corruption Perceptions versus Corruption Incidence: Evidence from Russian Regions

 

Veronika Belousova, National Research University Higher School of Economics, Russia
Rajeev K. Goel, Illinois State University, USA
Iikka Korhonen, Bank of Finland, Finland

September 2011

 

ABSTRACT
This paper examines determinants of corruption across Russian regions.  Key contributions include: (i) formal study of economic corruption determinants across Russian regions; (ii) comparisons of determinants of perceived corruption versus those of actual corruption; and (iii) studying influence of market competition and other factors on corruption.  Results show that economic prosperity, population, democracy, market competition, and urbanization are significant determinants of Russian corruption. The use of alternate corruption measures reveals that economic prosperity and population largely have a similar impact on corruption perceptions and corruption incidence. However, there are marked differences in the effects of competition, degree of democracy and urbanization.

 

Keywords: Corruption perceptions; Corruption incidence; Russia; Government; Competition
JEL classification: K42; O42; P37