Abstract

Is corruption systematically related to electoral rules? Recent theoretical work suggests a positive answer. But little is known about the data. We try to address this lacuna by relating corruption to different features of the electoral system in a sample of about eighty democracies in the 1990s. We exploit the cross-country variation in the data, as well as the time variation arising from recent episodes of electoral reform. The evidence is consistent with the theoretical priors. Larger voting districts—and thus lower barriers to entry—are associated with less corruption, whereas larger shares of candidates elected from party lists—and thus less individual accountability—are associated with more corruption. Individual accountability appears to be most strongly tied to personal ballots in plurality-rule elections, even though open party lists also seem to have some effect. Because different aspects roughly offset each other, a switch from strictly proportional to strictly majoritarian elections only has a small negative effect on corruption.

References

Ades
Alberto
and
Di Tella
Rafael
(
1999
). “
Rents, Competition and Corruption
,”
American Economic Review
,
89
, pp.
982
993
.

Adsera
Alicia
Boix
Carles
, and
Payne
Mark
(
2000
). “
Are You Being Served? Political Accountability and the Quality of Government
” Inter-American Bank of Development (IADB) Working Paper 438. Washington, DC.

Bennich-Björkman
Li
(
2002
). “
Building Post-Communist States: Political Corruption and Strategies of Party Formation in Estonia and Latvia.
” In
Democracy and Civil Society East of Elbe. Essays in Honor of Edmund Mozinski
, edited by
Eliasson
S.
, forthcoming.

Blais
Andre
and
Masicotte
Luis
(
1996
). “
Electoral Systems.
” In
Comparing Democracies.
edited by
LeDuc
L.
Niemi
R.
, and
Norris
P.
. Thousand Oaks, California:
Sage
.

Carey
John
and
Shugart
Matthew
(
1995
). “
Incentives to Cultivate a Personal Vote: A Rank Ordering of Electoral Formulas.
Electoral Studies
,
14
, pp.
417
439
.

Cox
Gary W.
(
1997
).
Making Votes Count: Strategic Coordination in the World's Electoral Systems.
New York:
Cambridge University Press
.

Ferejohn
John
(
1986
). “
Incumbent Performance and Electoral Control.
Public Choice
,
50
, pp.
5
25
.

Fisman
Raymond
and
Gatti
Roberta
(
2002
). “
Decentralization and Corruption: Evidence Across Countries.
Journal of Public Economics
,
83
, pp.
325
345
.

Golden
Miriam
and
Chang
Eric
(
2000
). “
Competitive Corruption: Fractional Conflict and Political Corruption in Postwar Italy Christian Democracy
” mimeo, UCLA.

Holmström
Bengt
(
1982
). “
Managerial Incentive Problems—A Dynamic Perspective
,” in
Essays in Economics and Management in Honor of Lars Wahlbeck
, Helsinki:
Swedish School of Economics
.

International Institute for Democracy and Electoral Assistance
(
1997
).
Handbook of Electoral System Design
, Stockholm, Sweden.

Daniel
Kaufmann
Kraay
Aart
, and
Zoido-Lobaton
Pablo
(
1999
). “
Aggregating Governance Indicators
” World Bank Working Paper 2195, New York.

Kunicova
Jana
and
Rose-Ackerman
Susan
(
2002
). “
Electoral Rules as Constraints on Corruption: The Risk of Closed-List Proportional Representation
” mimeo, Yale University.

Kurian
George
(ed) (
1998
).
World Encyclopedia of Parliaments and Legislatures.
Chicago:
Fitzroy Dearborn Publishers
.

Lambsdorff
Johann G.
(
2000
). “
The Transparency International Corruption Perceptions Index. 1. edition 1995” Transparency International (TI) Report 1996, 51–53. “2nd edition 1996
,” Transparency International (TI) Report 1997, 61–66. “3rd Edition 1997,” Transparency International (TI) Newsletter, September 1997. “4th Edition,” September 1998. “5th edition,” October 1999. Transparency International (TI) Source Book, 2000. A complete documentation of the methodology and the data can be obtained at: (http://www.uni-goettingen.de/uwvw). Berlin, Germany:
Publications Transparency International
.

La Porta
Rafael
Lopez-De Silanes
Florencio
Shleifer
Andrei
, and
Vishny
Robert
(
1999
). “
The Quality of Government.
The Journal of Law, Economics and Organization
,
15
, pp.
222
279
.

Leite
Carlos
and
Weidmann
Jens
(
1999
). “
Does Mother Nature Corrupt? Natural Resources, Corruption, and Economic Growth.
” International Monetary Fund Working Paper, 99/85, July.

Lijphart
Arend
(
1994
).
Electoral Systems and Party Systems.
New York:
Oxford University Press
.

Lijphart
Arend
(
1999
).
Patterns of Democracy: Government Forms and Performance in Thirty-Six Countries.
New Haven, Connecticut:
Yale University Press
.

Mauro
Paolo
(
1995
). “
Corruption and Growth.
Quarterly Journal of Economics
,
106
, pp.
681
711
.

Myerson
Roger B.
(
1993
). “
Effectiveness of Electoral Systems for Reducing Government Corruption: A Game-Theoretic Analysis.
Games and Economic Behaviour
,
5
, pp.
118
132
.

Persson
Torsten
Roland
Gerard
, and
Tabellini
Guido
(
2000
). “
Comparative Politics and Public Finance.
Journal of Political Economy
,
108
, pp.
1121
1141
.

Persson
Torsten
and
Tabellini
Guido
(
1999
). “
The Size and Scope of Government: Comparative Politics with Rational Politicians, 1998 Alfred Marshall Lecture.
European Economic Review
,
43
, pp.
699
735
.

Persson
Torsten
and
Tabellini
Guido
(
2000
).
Political Economics: Explaining Economic Policy.
Cambridge, Massachusetts:
MIT Press
.

Persson
Torsten
and
Tabellini
Guido
(
2003
).
The Economic Effect of Constitutions: What Do the Data Say
? Cambridge, Massachusetts:
MIT Press, forthcoming
.

Persson
Torsten
Tabellini
Guido
, and
Trebbi
Francesco
(
2002
). “
Electoral Rules and Corruption.
” mimeo. Stockholm, Sweden:
Stockholm University
.

Powell
G. Bingham
Jr. (
2000
).
Elections as Instruments of Democracy.
New Haven, Connecticut:
Yale University Press
.

Quain
Anthony
, (ed), (
1999
).
The Political Reference Almanac
, 1999/2000 Edition. Arlington, Virginia:
Keynote Publishing Company
. Available at (www.polisci.com).

Reed
Steven R.
and
Thies
Michael F.
(
2001
). “
The Causes of Electoral Reform in Japan.
” In
Mixed Member Electoral Systems—The Best of Both Worlds
?, edited by
Shugart
M. S.
and
Wattenberg
M. P.
. Oxford, England:
Oxford University Press
.

Jessica
Seddon
Gaviria
Alejandro
Panizza
Ugo
, and
Stein
Ernesto
(
2001
). “
Political Particularism Around the World
,” mimeo. Palo Alto, California:
Stanford University
.

Tanzi
Vito
(
1998
). “
Corruption Around the World: Causes, Consequences, Scope, and Cures.
IMF Staff Papers
45
(
4
); pp.
559
594
.

Treisman
Daniel
(
2000
). “
The Causes of Corruption: A Cross-National Study.
Journal of Public Economics
,
76
, pp.
399
457
.

Wacziarg
Romain
(
1996
). “
Information to Create Colonization Dummies
,” mimeo. Cambridge, Massachusetts:
Harvard University
.

Wei
Shang-Jin
(
1997a
). “
How Taxing is Corruption on International Investors.
” NBER Working Paper 6030.

Wei
Shang-Jin
(
1997b
). “
Why is Corruption so Much More Taxing Than Tax? Arbitrariness Kills
,” NBER Working Paper 6255.

World Bank
(
19971999
).
World Development Report.
New York:
Oxford University Press
.

Wooldridge
Jeffrey M.
(
2002
).
Econometric Analysis of Cross Section and Panel Data.
Cambridge, Massachusetts:
MIT Press
.

This content is only available as a PDF.