Applying Synthetic Control Method to Estimate the Impact of the Lava Jato Operation on the Worldwide Governance Indicators in Brazil

2021 ◽  
pp. 2631309X2110178
Author(s):  
Eduardo Carvalho Nepomuceno Alencar ◽  
Bryant Jackson-Green
Keyword(s):  
Rule Of Law ◽  
Control Method ◽  
Synthetic Control ◽  
Synthetic Control Method ◽  
The Rule Of Law ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Legal Judgments ◽  
The Impact ◽  
Control Of Corruption

In 2014, the most prominent anti-corruption investigation in Latin America called Lava Jato, exposed a Brazilian corruption scheme with reverberations in 61 countries, resulting in legal judgments for nearly 5 billion USD in reimbursements thus far. This article applies the synthetic control method on data from 135 countries (2002–2018) to test the hypothesis that Lava Jato impacts the Worldwide Governance Indicators in Brazil. The findings reveal that Lava Jato negatively affects control of corruption, the rule of law, and regulatory quality. There are signs of possible improvement in at least the corruption and the rule of law measures. This paper brings value to the criminological body of literature, notably lacking in the Global South.

scholarly journals Formal institutions and the development of entrepreneurial activity – the contingent role of corruption in emerging economies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arezou Harraf ◽  
Hasan Ghura ◽  
Allam Hamdan ◽  
Xiaoqing Li
Keyword(s):  
Emerging Economies ◽  
Corporate Entrepreneurship ◽  
Informal Institutions ◽  
Entrepreneurial Activity ◽  
Future Research ◽  
Formal Institutions ◽  
Business World ◽  
Content Type ◽  
Formal And Informal Institutions ◽  
Control Of Corruption

PurposeThe paper aims to analyse the interplay between formal and informal institutions' and their impact on entrepreneurship rates in emerging economies.Design/methodology/approachThis study expands previous research in examining the moderating effect of control of corruption on the relationship between formal institutions and the development of the entrepreneurial activity. The study utilizes longitudinal analyses of a dataset from 41 emerging economies over 11 years (2006–2016).FindingsFindings provided robust support for the study's hypotheses. The results suggested lower levels of corruption positively moderate the effects of a country's number of procedures and education and training on the rates of entrepreneurial activity, while negatively moderating the effects of firm-level technology absorption on the rates of entrepreneurial activity.Research limitations/implicationsThe study has considered only one particular aspect of high-growth entrepreneurship, which is newly registered firms with limited liability. Although newly registered firms are recognized as one of the critical drivers of entrepreneurial activity. Future research should seek to examine other aspects of growth-oriented entrepreneurship such as activities involving a high level of innovation, corporate entrepreneurship or technology developments.Practical implicationsThis study advanced the existing theories in the field of entrepreneurship and institutional economics as it merged the two theories as a driving framework in the design of the study in the context of emerging economies.Social implicationsThe study tested a theoretical model by expanding the number of emerging economies in the study and found comparable findings that explain factors that may influence the likelihood of individuals entering entrepreneurship.Originality/valueThis article adds to the current literature as it highlights the importance of the interplay of formal and informal institutions in determining their impact on entrepreneurship rates in emerging economies. This is of particular importance to policy-makers, and the business world as the empirical results of this study show the benefits of control of corruption in boosting entrepreneurial rates in these economies, which strive for economic diversification in their developmental endeavours.

Mathematical modeling and optimal control of corruption dynamics

2018 ◽  
Vol 11 (06) ◽  
pp. 1850090 ◽  
Author(s):  
S. Athithan ◽  
Mini Ghosh ◽  
Xue-Zhi Li
Keyword(s):  
Mathematical Modeling ◽  
Optimal Control ◽  
Developing Countries ◽  
Numerical Simulations ◽  
Equilibrium Point ◽  
Present Model ◽  
Control Model ◽  
Asymptotically Stable ◽  
Epidemiological Modeling ◽  
Control Of Corruption

The problem of corruption is of serious concern in all the nations, more so in the developing countries. This paper presents the formulation of a corruption control model and its analysis using the theory of differential equations. We found the equilibria of the model and stability of these equilibria are discussed in detail. The threshold quantity [Formula: see text] which has a similar implication here as in the epidemiological modeling is obtained for the present model. The corruption free equilibrium is found to be stable when [Formula: see text] is less than [Formula: see text] and unstable for [Formula: see text]. The endemic equilibrium which signifies the presence of corrupted individuals in the society exists only when [Formula: see text]. This equilibrium point is locally asymptotically stable whenever it exists. We perform extensive numerical simulations to support the analytical findings. Furthermore, we extend the model to include optimal control and the optimal control profile is obtained to get the maximum control within a stipulated period of time. Our presented results show that the level of corruption in the society can be reduced if corruption control efforts through media/punishments etc. are increased and put in place.

scholarly journals Governance, Regulations, Trade Openness and FDI Inflows: Empirical Study

2015 ◽  
Vol 7 (12) ◽  
pp. 44 ◽  
Author(s):  
Marwan Ahmad Alshammari ◽  
Mosab Amjad Hammoudeh ◽  
Milos Pavlovic
Keyword(s):  
Quality Control ◽  
Empirical Study ◽  
International Business ◽  
Trade Openness ◽  
Future Directions ◽  
Fdi Inflows ◽  
Governance Effectiveness ◽  
Potential Impact ◽  
Control Of Corruption

Governance effectiveness and regulation quality have been drawing the attention in the international business arena, yet, there has not been a consensus findings regarding its potential impact on the FDI inflows. In this paper, we examine the possible links between the governments’ effectiveness and their regulation quality and the amount of FDI inflows using the existing literature and theories in the economic and international business fields. We find that regulation quality, control of corruption, and trade openness have mixed results, suggesting that further exploration is needed in this field. Results are explained and future directions are suggested based upon the empirical findings.

scholarly journals Corruption and the agricultural production efficiency of the European countries during the recent economic crisis

2015 ◽  
Vol 2 (3) ◽  
pp. 427-437
Author(s):  
Mohammad Monirul Hasan ◽  
József Tóth
Keyword(s):  
Technical Efficiency ◽  
Economic Crisis ◽  
Agricultural Production ◽  
Production Efficiency ◽  
National Level ◽  
Geographical Location ◽  
European Countries ◽  
Economic Downturn ◽  
Member States ◽  
Control Of Corruption

This paper examines the association between controls of corruption and the agricultural production efficiency of 23 European Union Member States during the recent economic crisis. Production efficiency, measured in terms of technical efficiency, is the effectiveness of a given set of inputs that is used to produce an output. Owing to climate and geographical location agriculture in European countries is diverse. The economic downturn led by the financial crisis which started in mid-2007, is still prevailing across European countries. Control of corruption along with the existing economic crisis of the member states are affecting agriculture production efficiency. This study used the national level production data for the period of 2003-2009. It shows that the technical efficiency of most Member States have declined over the years and that it was significantly lower in austere economic crisis time 2007-09 than 2003-06 for all countries. It is also found that the declining trend of technical efficiency is significantly lower for central and eastern European countries than for the western European countries. Study finds that the control of corruption in the presence of high government effectiveness, decreases the technical efficiency of agricultural production in the Member States.Res. Agric., Livest. Fish.2(3): 427-437, December 2015

scholarly journals On the evolution of corruption patterns in the post-communist countries

Equilibrium ◽  
2015 ◽  
Vol 10 (1) ◽  
pp. 33 ◽  
Author(s):  
Andrzej Cieślik ◽  
Łukasz Goczek
Keyword(s):  
Transition Probability ◽  
Transition Probability Matrix ◽  
Markov Transition Probability ◽  
Long Run ◽  
Markov Transition ◽  
Corruption Index ◽  
Communist Countries ◽  
Control Of Corruption ◽  
Over Time

In this paper, we study the evolution of corruption patterns in 27 post-communist countries during the period 1996-2012 using the Control of Corruption Index and the corruption category Markov transition probability matrix. This method allows us to generate the long-run distribution of corruption among the post-communist countries. Our empirical findings suggest that corruption in the post-communist countries is a very persistent phenomenon that does not change much over time. Several theoretical explanations for such a result are provided.

scholarly journals DETERMINANTS OF INTRA SUB-SAHARAN AFRICAN TRADE: EVIDENCE FROM ECOWAS AND CEN-SAD COUNTRIES

2020 ◽  
Vol 8 (2) ◽  
pp. 69-78
Author(s):  
Sodiq Olaiwola Jimoh ◽  
Felix Gbenga Olaifa
Keyword(s):  
Political Violence ◽  
West African ◽  
Law And Order ◽  
Development Indicators ◽  
Poisson Models ◽  
Regulatory Quality ◽  
Sub Saharan ◽  
Governance Institutions ◽  
To Come ◽  
Control Of Corruption

This study investigates the determinants of intra-regional trade in the Economic of West African States (ECOWAS) and the Community of Sahel-Saharan Sates (CEN-SAD) over the period of 1995-2018.The study employs the modified Poisson models, which captures the source of zero counts. Data on the real exchange rate, population, and gross domestic product were sourced from World Bank Development Indicators. Import flow, time of import, and time of export were computed from WITS (COMTRADE). Further, the study obtained data on voice and account, law and order, government effect, regulatory quality, reduction in political violence, control of corruption from World Wide Governance indicator. The results of the study indicated that imports within ECOWAS are driven by one governance variable or the other either in the importing countries or the partner countries. Besides, trade facilitation is a binding constraint to imports, while population and GDP are important drivers of intra-ECOWAS trade. For CEN-SAD, it is evident that the gravity variables are responsible for imports, whereas governance variables have no significant effect on imports. The implication of these results is that authorities in ECOWAS and CEN-SAD should strengthen governance institutions as doing so will boost trade within the region. Also, it is necessary for government, particularly in CEN-SAD, to come up with policies that will allow for accountability and transparency.

The control of corruption

2004 ◽  
Vol 11 (4) ◽  
pp. 316-321
Author(s):  
G. Scanlan
Keyword(s):  
Control Of Corruption
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