• Korea Trade Review
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• v.46 no.2
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• pp.337-354
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• 2021

Several previous studies have not been able to derive consistent research results on the impact of the level of corruption in local countries on foreign direct investment. Therefore, in order to suggest that this study should consider the relative level of corruption rather than the level of absolute corruption, 1) first, examine the moderating effect of the absolute level of corruption on the determinants of foreign direct investment, and 2) examine the moderating effect of the relative corruption on the determinants of foreign direct investment. This study collected 9-year data from 2012 to 2020 based on the Corruption Perceptions Index (CPI) published by Transparency International. A total of 549 observations (country-year) from 82 countries were sampled and a generalized estimation equation (GEE) analysis was performed. As a result of empirical analysis, it was found that the moderating effect of absolute corruption did not appear, whereas the moderating effect of relative corruption reversed the negative (-) relationship between cultural distance and foreign direct investment into a positive (+) relationship. Based on these empirical results, this study suggest that Korean companies need to consider the relative level of corruption with Korea instead of the absolute level of corruption of the investee when conducting foreign direct investment.

• International Journal of Computer Science & Network Security
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• v.21 no.3
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• pp.134-140
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• 2021

The development of technology speeds up the process of obtaining information and its analysis to track the level of corruption in different countries and develop countermeasures. This study examines the role of information and analytical support of anti-corruption policy as a tool for government accountability and analysis, evaluation, combating corruption in Eastern Europe. The purpose of the article is to identify the components of the information-analytical system that help reduce the level of corruption. The research methodology is based on a qualitative content analysis of the functioning of information and analytical systems of Ukraine used by anti-corruption bodies. A quantitative analysis of the CPI score was conducted, according to Transparency International, to identify the effectiveness of anti-corruption policies in developing countries. The results show similar trends in countries developing on the effect of the use of information and analytical systems in the implementation of anti-corruption policies, strategies and measures. The strategy to combat corruption mainly involves increasing the independence and powers of anti-corruption bodies. Therefore, the development of information and analytical support is aimed at automating the processes of pre-trial investigations and criminal proceedings, information protection. As a tool for accountability, information and analytical systems may be ineffective due to the abuse of power by higher anti-corruption bodies due to political pressure from elite structures. Restrictions on political will are a major problem for the effectiveness of anti-corruption policies.

• Survey Research
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• v.6 no.1
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• pp.1-38
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• 2005

Considering the importance of corruption index measurement model and the diffusion of popular awareness about the importance of anti-corruption, this research compared and analyzed existing corruption index measurement models. This paper has selected "Anti-Corruption Index model(ACI model)" that was developed by Seoul Development Institute and "CCEJ's Corruption Index model" which is under use by the Citizens' Coaltion for Economic Justice. These two models were analyzed in terms of appropriateness of 'the indicator and index choice method', 'the research design' and 'the use of statistical data'. This analysis shows that two models have some problems. First, at the level of indicator and index choice method, the indicators of CCEJ's corruption index model is too atomized and redundant. As not putting weight of indicator, it did not consider importance of each indicator. Citizens who evaluated the level of corruption didn't participate in the weight evaluation team, which results in failure of the model to reflect the citizens' opinion. Also, because the question about Seoul Metropolis' corruption level is not included, it is not detected difference between real corruption level and perceptive corruption level. Second, in terms of appropriateness of research design, the sample of the CCEJ' corruption index model is too small to get credibility. The objectivity of research method seems to be low because survey was performed by exit interview. In addition, 38 items are overfull in the questionnire of CCEJ's corruption index model compare to 13 items in ACI model. Also, in making up questions, the terms are redundant and unobvious. Third, in regarding with feasibility of the statistical data, the CCEJ's corruption index model uses regulation data for disciplinary punishment of 25 local governments in Seoul from 1995 to 1999. But, it is common ideas of scholars that statistical data indicates the tip of an iceberg in corruption. So for using a statistical data, it needs a data of enough quantity and has a high level credibility. In addition, objective method of giving weight is not developed. In this point of view, the use of statistical data has some limits. To solve this problem, ① objective data should be included in the indicators, ② various indicators should be developed and ③ a method of giving weight should be improved.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.629-639
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• 2020

The current study explains how corruption, terrorism, political stability and oil price has an effect on on the Iraq stock exchange utilizing corruption perception index as a proxy of corruption, global terrorism index as proxy for terrorism, political stability and oil price with ISX60 index as proxy of stock market for the period (2005-2019) using Ordinary Least Square method. The results show that the level of corruption, terrorism activities and political stability coefficient is significantly positive with Iraq stock exchange. In contrast, the oil price coefficient is significantly negative with Iraq stock exchange, which means that lower levels of corruption, less terrorism activities and more stability in political system have strong influence on stock market development in Iraq. The study concludes that the explanatory variables are important for Iraq stock exchange. Hence, the study suggests the policy makers to develop stock market by implementing policies and strategies to overcome high level of corruption, terrorism activities especially after ISIS/ISIL announcement has been made public. There is a need for transparency and creating stable political environment through good governance practices in order to attract more foreign investment and promote economic development. Factors like terrorism and corruption make economic and political systems unstable and has an adverse effect on on Iraq's stock exchange performance.

• Journal of the Korea Management Engineers Society
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• v.23 no.4
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• pp.19-31
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• 2018

Corruption is a serious political factor that distorts economic structure and slows economic development. In particular, the transition to the market opening economy increases the corruption incentives due to the transitional situation. The purpose of this study is to investigate the influencing factors on corruption using 2013 Myanmar Enterprise Survey data provided by World Bank. As a result of the analysis, it was found that the manager's willingness to dealing the regulation and the necessity of licensing had a positive relationship with corruption at the level of 90% and 95%, respectively. In the competitive environment factor, the intensity of the competition showed a significant increase at the level of 90%. In the institutional environment, the perception of social corruption and the obstacle of the taxation authorities increased the corruption. On the other hand, the increase in the instability of the political environment and strict enforcement of laws has been shown to reduce corruption. However, there was no significant relationship between managerial capacity, corruption of competitors, tax rate, and administrative environment.

• International Journal of Computer Science & Network Security
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• v.22 no.3
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• pp.17-22
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• 2022

This article defines the process of formation of anti-corruption consciousness as one of the areas of interaction between public authorities and civil society institutions. It is concluded that the implementation of the state anti-corruption policy in Ukraine may be more promising if the institutions of civil society are actively involved. The degree of citizen engagement can be increased by increasing social trust, as well as by increasing the level of political and legal education and culture. Particular attention should be paid to the organization of public control and monitoring of the activities of public authorities, impartial coverage of information on the fight against corruption in the media, as well as the joint conduct of an information and educational campaign and the promotion of the formation of anti-corruption consciousness among a large number of citizens.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.529-540
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• 2020

The objective of this research paper is to study the simultaneous relationship between fiscal decentralization, corruption, and income inequality among Vietnamese provinces. We use a balanced panel data set of 63 provinces/cities in Vietnam in the period from 2011 to 2018. The study used 3SLS-GMM (Three Stage Least Squares - Generalized Method of Moments estimator) and GMM-HAC (Generalized Method of Moments - Heteroskedastic and Autocorrelation Consistent estimator). Empirical evidence shows a strong simultaneous relationship: increased corruption will increase regional income disparities, income inequality, and increase fiscal decentralization. In addition, the results also suggest that an increase in per-capita income will reduce the level of corruption, or better control corruption of each province. The degree of increase in income inequality, which reduces fiscal decentralization, is the same for trade liberalization. All demonstrate that there is a simultaneous relationship between fiscal decentralization, corruption, and income inequality. In a region of high public governance quality, fiscal decentralization positively effects its economic growth. This issue will indirectly increase income inequality between provinces within a country. Our findings imply that a country's fiscal decentralization strategy should be linked to improving corruption control and local governance effectiveness, indirectly improving income inequality between localities or regions.

• Asia-Pacific Journal of Business
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• v.11 no.1
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• pp.77-91
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• 2020

Purpose - The purpose of this study is to examines the effect of corruption pressure in host country on sequential investment. The study further investigates how the information acquisition capacity of MNEs and the political tie in the host country had a moderating effect on the relationship between corruption and sequential investment. Design/methodology/approach - Ordered logistic regression is hired to analyze 1,260 MNEs' sequential investment in Vietnam. Findings - The empirical results of this study demonstrate the more MNEs perceive the strong level of pressure to be corrupt in the local market, the less they are likely to invest. The information acquisition capacity of MNEs has been shown to mitigate the negative effects of corruption pressures on sequential investments, while the moderating effect of political tie in host country is partially supported. Research implications or Originality - This study identified that the corruption pressures of host countries negatively affect not only MNEs that are entering, but also the ones that have already entered host countries; the corruption discourages any sequential investment for existing MNEs. By suggesting two moderating variables, this study will provide managerial implications for MNEs and managers who face corruption pressure in host countries.

• International Journal of Computer Science & Network Security
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• v.21 no.12
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• pp.316-322
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• 2021

The problem of corruption and the spread of corruption crime today is not only one of the main social problems, but also an obstacle to the implementation of reforms in Ukraine. Given the complexity, scale and diversity of the impact of corruption, it is an undisputed threat to national security. At the state level, corruption threatens, firstly, state security as a result of its spread in public authorities and the combination of political and business spheres; secondly, in the domestic political sphere as a result of non-compliance and violation by officials of public authorities and local governments of the laws of Ukraine; thirdly, in the economic sphere as a result of the dominance of personal interests of civil servants over national ones; fourthly, in other spheres, namely, military, social, ecological, informational, foreign policy, etc. The origins of corruption are diverse and are formed not only in the country but also abroad. The current corruption threat is the result of the country's ineffective domestic and foreign anticorruption policies. Acceleration of the spread and manifestation of external corruption threats is associated with a number of unresolved foreign policy issues against the background of the development of globalization and integration processes, in particular: economic and financial dependence of the country on international financial institutions and organizations; as well as from foreign countries that pose a potential threat due to their ambitious plans to expand our country; unresolved issues regarding the international legal consolidation of borders, etc. It is noted that the current conditions for the development of state security, due to new challenges and threats, need to improve and implement new measures to prevent corruption as a negative impact of the main threats to national economic security. As a result of the study, the main measures to counter the main threats to the economic security of the state were identified.

• Korean Journal of Legislative Studies
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• v.25 no.2
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• pp.141-177
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• 2019

This paper explains cross-national variation of CPI(corruption perception index) centering on legal culture. By critically reviewing previous researches on effects of British common law system on corruption, we define legal culture as citizens' perception of their legal system. Specifically, measuring legal culture with respect to courts fairness and courts accessibility, we test two hypotheses on effects of legal culture on corruption. A cross-national comparison of 78 countries with OLS regression analyses reveals that courts fairness tends to lower the level of corruption while courts accessibility does not have a significant effect on corruption. Based on this result, we suggest policy implications for judicial reform as well as anti-corruption measure, which puts more emphasis on reforming legal practice that hinders courts fairness than increasing legal service supply. In addition, as the essence of legal culture lies in citizens' shared perception of the legal system, we argue that a broad and solid citizens' consciousness of fair and equitable legal procedures is indispensable in preventing corruption.