Corruption Perception following Privatization Reforms: The Moderating Role of Governance

Abstract

This study analyzes perceived corruption following privatization reforms, taking into account the role of governance quality in 22 European countries from 2002 to 2013. Initial analysis did not reveal significant changes in perceived corruption after privatization reforms, but the results are moderated by governance quality. In general, the empirical findings suggest that corruption is lower when the quality of governance increases, and it additionally affects perceived corruption after privatization reforms. Concretely, accountability, government effectiveness, regulatory quality, the rule of law, and control of corruption mechanisms are essential to prevent corruption after privatization.

Keywords

• Privatization
• Corruption
• Good governance
• Accountability