Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212692 
Year of Publication: 
2011
Series/Report no.: 
BOFIT Discussion Papers No. 4/2011
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
Using recent pooled data from several developed nations, the paper uniquely examines whether the composition of payment instruments has a bearing on the prevalence of corruption in a country. Our results suggest that the choice of instruments matters. Paper credit transfer transactions are consis-tently associated with corrupt activities, while credit card transactions tend to reduce them. Cheques generally increase corruption, the results with respect to nonpaper credit transfers are mixed, while direct debits fail to show significant effects on corruption. These findings hold for alternative corruption measures and when allowance is made for endogeneity of payment instruments.
Subjects: 
Corruption
Cheques
Credit card
Cash
Direct debit
Payment instruments
JEL: 
K4
G3
H3
F3
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-699-6
Document Type: 
Working Paper

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