• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.12 no.1
• /
• pp.188-194
• /
• 2011

Using cross-section of 83 countries, this paper empirically examines the relationship between corruption and government expenditure volatility. A country's corruption is denoted by either control of corruption, compiled by Kaufmann et al. (2008), or corruption perceptions index, provided by Transparency International. In addition, a country's government expenditure volatility is measured by the standard deviation of the change ratio of government expenditure from 1990 to 2005. Regression results suggest that a country's control of corruption and corruption perceptions index (higher ratings signifying more transparency) are significantly and negatively associated with the volatility of government expenditure. However, the estimated coefficients of corruption perceptions index show somewhat reduced statistical significances. The results are robust to the sub-sample of countries excluding European OECD countries. Therefore, the regression results suggest corrupt bureaucrats are able to periodically change economic rules of the game, which results in the possibility of a higher variance in government expenditure.

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

• Journal of Digital Convergence
• /
• v.15 no.6
• /
• pp.1-8
• /
• 2017

This study examined the factors influencing foreign direct investment(FDI) in OECD countries where Korea is a target country. The differences in the cultural distances of host and home countries and the difference in the perceptions of corruption have been used to identify the factors affecting foreign direct investment. As a result of the study, it was found that there are differences in foreign direct investment according to cultural dimension and corruption perceptions index. Foreign direct investment may increase or decrease depending on the cultural tendency and the higher the perceptions of corruption, the more active the investment. The smaller the power distance between host country and home country in the factors affecting foreign direct investment, the larger the number of investments and the larger the size of individualism versus collectivism. Foreign direct investment increased when the investing country's corruption perceptions index was high. The results of this study confirm that cultural and corruption perceptions can affect trade transactions. Therefore, it is necessary to consider the cultural tendency and the cultural distance in the trade transaction by confirming that the degree of culture and corruption perceptions can affect the trade transaction. And that it can influence trade and economic growth by appropriately managing social variables such as public corruption.

• Journal of Contemporary Eastern Asia
• /
• v.1 no.2
• /
• pp.29-32
• /
• 2002

• KSCE Journal of Civil and Environmental Engineering Research
• /
• v.32 no.3D
• /
• pp.231-237
• /
• 2012

The interrelation of integrity degree and country competitive power was known as high. But, according to the CPI announcement of Transparency International, the domestic Corruption Perceptions Index ranked 5 points, as being corrupt. It was investigated that the corruption level of Korea was getting worse most in the construction sector. In this way, it is emergent and inevitable to improve the transparency in the construction industry, accounting for 25-54% of the total corruption cases in our society. Transparency International has opened to the public the source data, utilized in the CPI measures in 2010. In the case of Korea, the 9 data of 6 organizations were utilized. According to the PERC, the corruption level of the private sector in Korea has been estimated as the worst among the 16 countries. In this context, this paper analyses the corruption level of Korea by utilizing the source data of the Transparency International CPI. And it aims to comprehend structural problems in the construction industry and to suggest implicative countermeasures through out the anti-corruption activities in the world. It propose finally an improvement of the structural causes in the construction industry, a promotion of effective punishment against corrupt practices, a reinforcement of the transparency management in the construction sector, etc.