Journal Article

Does the Internet Reduce Corruption? Evidence from U.S. States and across Countries

Thomas Barnebeck Andersen, Jeanet Bentzen, Carl-Johan Dalgaard and Pablo Selaya

in The World Bank Economic Review

Volume 25, issue 3, pages 387-417
Published in print October 2011 | ISSN: 0258-6770
Published online May 2011 | e-ISSN: 1564-698X | DOI: https://dx.doi.org/10.1093/wber/lhr025
Does the Internet Reduce Corruption? Evidence from U.S. States and across Countries

More Like This

Show all results sharing these subjects:

  • Law and Economics
  • Economic Development
  • Public Economics

GO

Show Summary Details

Preview

We test the hypothesis that the Internet is a useful technology for controlling corruption. In order to do so, we develop a novel identification strategy for Internet diffusion. Power disruptions damage digital equipment, which increases the user cost of IT capital, and thus lowers the speed of Internet diffusion. A natural phenomenon causing power disruptions is lightning activity, which makes lightning a viable instrument for Internet diffusion. Using ground-based lightning detection censors as well as global satellite data, we construct lightning density data for the contiguous U.S. states and a large cross section of countries. Empirically, lightning density is a strong instrument for Internet diffusion and our IV estimates suggest that the emergence of the Internet has served to reduce the extent of corruption across U.S. states and across the world.

Keywords: K4; O1; H0

Journal Article.  11160 words.  Illustrated.

Subjects: Law and Economics ; Economic Development ; Public Economics

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content. subscribe or purchase to access all content.