Does Perceived Corruption Converge? International Evidence

Abstract This article analyses the evolution over time of perceived corruption for a large set countries worldwide. To proxy corruption, we use recently proposed Bayesian Corruption Index (Standaert, S. (2015). Divining level corruption: A bayesian state space approach, Journal Comparative Economics , 43(3), 782–803). We employ test developed by (Phillips, P., & Sul, D. (2007). Transition modeling and econometric convergence tests. Econometrica, 75, 1771–1855) that enables endogenous determination clubs time. Having divided into clubs, explore whether each club differs from others in terms their competitiveness ranking. In particular, drawing on 2019 Global Competitiveness Report, focus not only global score, but also first fifth pillars competitiveness: institutions health, respectively. Mean median scores confirm general rule low levels tend to be associated with high-income established democracies, high-quality healthcare systems, relatively low-income inequality. However, such as Spain Italy, which are innovation-driven economies excellent health pillar, worst suggesting there additional idiosyncratic aspects could drive levels.