Corruption and Socioeconomics Determinants:Empirical Evidence of Twenty Nine Countries

This paper measures the effect of different socioeconomic determinants on countries’ transparency efficiency. Specifically, using Data Envelopment Analysis (DEA), the transparency efficiency of twenty nine countries is calculated. Then with the help of factor analysis we extract two factors from seven socioeconomic variables according to their communality of influence. Finally we set up a logistic regression using the efficiencies derived from DEA and the factors extracted from factor analysis. The results suggest that higher transparency efficiency appears in countries with cultural values of lower power distance, masculinity, uncertainty avoidance and lower individualism. Additionally, lower inflation rates and lower political and economical risks constitute to higher levels of countries’ transparency efficiency while positive GDP growth doesn’t ensure countries’ transparency efficiency.