article · Frontiers in Management Science
An analysis of 163 countries between 2000 and 2017 examines the non-linear relationship between corruption control and human development. Using panel threshold regression, the findings show that reducing corruption initially boosts human development in nations with low Human Development Index levels. However, once a specific threshold of human development is reached, further control of corruption appears to reduce human development outcomes. This indicates that controlling corruption aids progress in less developed contexts but may hinder it in highly developed settings. In addition, broader governance and socio-economic measures show clear effects. Factors including political stability, government effectiveness, the rule of law, regulatory quality, research and development, and urbanisation contribute positively to human development, whilst higher rates of smoking and anaemia negatively affect it.
Understanding how anti-corruption efforts interact with development levels can help policymakers design interventions that fit their national contexts. Rather than assuming that uniform governance reforms produce identical benefits everywhere, these findings demonstrate that institutional priorities must align with a country's existing human development baseline to achieve positive social and economic outcomes.
The abstract does not indicate an application pathway, as it focuses strictly on macroeconomic and governance policy analysis without describing commercial products or market-facing technologies.
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This paper applies the panel threshold regression analysis to investigate the potential non-linear relationship between control of corruption and human development. Pass studies fail to investigate the dynamics in the corruption-human development relationship. Using a sample of 163 countries from 2000 to 2017, the results indicate that a decline in corruption initially improves human development but after a threshold level of human development, control of corruption reduces human development. Explicitly, the results suggest that control of corruption might grease the wheel of human development in countries with low HDI and sand the wheel in countries with high HDI. We also find that political stability, government effectiveness role of law, regulatory quality, research and development and urbanisation improve human development whereas an increase in the prevalence of anaemia and smoking reduces human development.
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DOI: 10.56397/fms.2025.03.04
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