The Anticorruption Report Vol. 4: Beyond the Panama Papers

The final title in the series The Anticorruption Report covers the most important findings of the five-year-long EU-sponsored ANTICORRP project on corruption and organized crime. How prone to corruption are EU funds? Who wins and who loses the anticorruption fight? And can we have better measurements than people’s perceptions to indicate if corruption changes? This […]

EU Aid and the Quality of Governance

Using a panel dataset on 103 developing countries, this paper empirically analyzes the impact of the European aid flows on quality of governance in aid recipient countries. The analysis employs aggregated Official Development Data as well as disaggregated project level data. The results show that while bilateral aid from the largest European donors does not show any impact, multilateral […]

Natural Resource Revenues, Corruption and Expropriation

This paper develops a formal model that looks at the mutually endogenous determination of foreign direct investments in natural resource-rich countries, the decision of host governments to expropriate these investments, and the level of corruption. Higher resource production makes expropriation more attractive from the perspective of national governments. A low expropriation risk is in turn an important determinant of international investments […]

The State of State Capacity: a review of concepts, evidence and measures

What is state capacity and how does it affect development? The concept of state capacity acquired centrality during the late seventies and eighties, sponsored by a rather compact set of scholarly works. It later permeated through several disciplines and has now earned a place within the many governance dimensions affecting economic performance. The present article […]

Mode of International Investment and Endogenous Risk of Expropriation

This paper analyzes the relationship between the mode of international investment and institutional quality. Foreign investors from a capital-rich North can either purchase productive assets in a capital-poor South and transfer their capital within integrated multinational firms or they can form joint ventures with local asset owners. The South is ruled by an autocratic elite […]

Financial Liberalization and Institutional Development

This study empirically analyzes the effects of de jure financial openness on institutional quality as captured by indicators on investment risk, corruption level, impartiality of judiciary system, and the effectiveness of bureaucracy. We show that a higher degree of financial openness improves institutional quality mainly by reducing investment risks. We also study the effect of […]

The Anticorruption Report. Volume 1: Controlling Corruption in Europe

The first volume of the Anticorruption Report series provides a comprehensive analysis of causes and consequences of corruption in three European regions, presenting corruption risks for several European countries and concrete policy recommendations on how to effectively address those risks. Print and e-book version of the report can be purchased here.

Global comparative trend analysis report

Can governance be changed by human agency? The answer to this central policy question has been taken for granted in the last twenty years as good governance promotion began to feature as a top priority of every international donor organization. Despite this fact, the answer is not as simple. In this introductory study the answer […]

Financial Integration in Autocracies: Greasing the Wheel or More to Steal

This paper analyzes the influence of financial integration on institutional quality. We construct a dynamic political-economic model of an autocracy in which a ruling elite uses its political power to expropriate the general population. Although financial integration reduces capital costs for entrepreneurs and thereby raises gross incomes in the private sector, the elite may counteract […]

Beyond Perception: Has Romania’s Governance Improved since 2004?

Romania and Bulgaria encounter today problems in joining the visa-free Schengen area. The main one in the public eye is corruption. Both countries pledged to improve their rule of law when signing their accession treaties in 2005, yet little progress is perceived by observers or captured with governance measurements relying on perception, such as CPI […]

The Experience of Civil Society as an Anti-Corruption Actor in East Central Europe

Why, despite their most remarkable progress on democracy, have most East Central European states retained modest levels of governance? Is civil society still able to play any significant role in improving governance, even after its institutionalization at low levels of participation, after its initial high mobilization in the early years of democratization? Does the impact, […]