Skip to main content
Does financial development reduce corruption?
Economics Letters (2011)
  • John Thornton
  • Yener Altunbas
We estimate the impact of bank credit to the private sector on corruption using indicators of a country’s legal origin as instrumental variables to assess causality. We find that bank credit to the private sector reduces corruption, with the result robust to instrumenting for bank credit and for many different controls.
  • Financial development; Corruption; Instrumental Variables
Publication Date
Citation Information
John Thornton and Yener Altunbas. "Does financial development reduce corruption?" Economics Letters (2011)
Available at: