Poverty as a Determinant of Corruption – A Parametric Approach

Abstract

The aim of this study is to evaluate the impact of poverty rates upon corruption phenomena. Reducing poverty and social exclusion has become crucial nowadays, bringing along positive effects upon the perceived cleanliness from corruption. Our paper evaluates various poverty proxies as subjectively assessed corruption determinants through linear and parametric approaches, for the sample of EU-27 member states and for the 2015-2022 time span. We determine threshold values for the at risk of poverty rates on genders and age groups, as inflection points for the second degree polynomial function of poverty’s impact upon the Corruption Perception Index. Policy implications emerge, in order to maximize the beneficial effects of poverty reduction upon corruption.

Keywords

• poverty rates
• at risk of poverty
• corruption
• panel data
• parametric approach