corruption. It shows that an improvement in institutional quality reduces the shadow economy and affects the corruption market …. The exact relationship between corruption and institutional quality is, however, ambiguous and depends on the relative … effectiveness of the institutional quality in the shadow and corruption markets. The predictions of the model are empirically tested …

Corruption in developing states reduces the effectiveness of foreign aid that is allocated to them, because government … differently. This article argues that the responsiveness of donor states to corruption in recipient states depends on their own … level of corruption: less corrupt donor states allocate more aid to less corrupt recipient states than to corrupt recipients …

corruption. It shows that an improvement in institutional quality reduces the shadow economy and a?ects the corruption market …. The exact relationship between corruption and institutional quality is, however, ambiguous and depends on the relative e …?ectiveness of the institutional quality in the shadow and corruption markets. The predictions of the model are empirically tested …

economies. We focus on the corruption distance between the home and host countries as a crucial part of institutional quality …. Our results confirm that FDI flows are higher when they come from countries with low differences in corruption with Turkey …. Conversely, FDI flows are negatively affected when there exists a large difference in corruption between the investing country …