A contingency theory of corruption: The effect of human development and national culture

Corruption is a world-wide problem that disproportionately affects those with the fewest personal and economic resources. It was hypothesized that human development restricts corruption, and the magnitude of such an effect is contingent upon the conditions of national culture. Measures were gathered for 68 countries that account for 80% of the world's population. Support was found for the main effect of human development on corruption. Consistent with contingency theory, results also indicate that the relation between human development and corruption is moderated by power distance and individualism. Implications for policy making to reduce corruption are discussed.

► We model the interaction of human development and national culture on corruption.
► Power distance impedes the main effect of human development on corruption.
► Increases in human development will thwart corruption more effectively in individualistic cultures.
► It is important to involve the citizens of the nation in the improvement of their own homelands.
► Efforts and funds expended to reduce national corruption should consider the level of human development achieved by the citizens of the nation in question.