ISSN: 2038-7296 POLIS Working Papers [Online] Dipartimento di Politiche Pubbliche e Scelte Collettive – POLIS Department of Public Policy and Public Choice – POLIS Working paper n. 171 September 2010 An analysis of the determinants of corruption: Evidence from the Italian regions Nadia Fiorino and Emma Galli UNIVERSITA’ DEL PIEMONTE ORIENTALE “Amedeo Avogadro” ALESSANDRIA Periodico mensile on-line "POLIS Working Papers" - Iscrizione n.591 del 12/05/2006 - Tribunale di Alessandria An Analysis of the Determinants of Corruption: Evidence from the Italian Regions Nadia Fiorino∗ Emma Galli Università degli Studi L’Aquila and Università degli Studi di Roma “La CREI Sapienza” and CREI Abstract This paper investigates the causes of corruption in the Italian regions for the period 1980 to 2002 by selecting a number of hypotheses assessed in the literature. Corruption turns out to be driven by the level of per capita income and of education. While, as expected, income is negatively related with corruption, education is not; its positive impact on corruption can be explained as if corruption in Italy was typically a ‘white collars’ phenomenon during the 1980s and 1990s. Moreover the size of public investments in both the economic and politico- institutional dimensions seems to be a crucial factor in the explanation of the phenomenon. Keywords: Corruption; Determinants; Institutions; Italian regions JEL classification: O1; H0 1. Introduction Corresponding Author, Nadia Fiorino, Dipartimento di Sistemi e Istituzioni per l’Economia, Università degli Studi dell’Aquila, Via Giovanni Falcone, 25 - 67100 Coppito-L’Aquila, ITALY. E-mail:
[email protected]. We would like to thank Luisanna Onnis, Fabio Padovano, Simona Scabrosetti, and the participants to the 2008 Società Italiana di Economia Pubblica Conference and to the 2009 European Public Choice Society Meeting.