Corruption Perception, Financial Secrecy, and Globalization: An Empirical Analysis of 19 European Countries

Authors : Gülden Kadooğlu Aydın, Burak Büyükoğlu

Pages : 1382-1398

Doi:10.30784/epfad.1692382

View : 95 | Download : 146

Publication Date : 2025-12-31

Article Type : Research Paper

Abstract :This study aims to examine the relationship between corruption and financial secrecy as well as the effects of countries\\\' financial development, money laundering, and globalization levels on corruption. The study analyses the relationship between the corruption perceptions index and the financial secrecy index, financial development index, anti-money laundering index and globalization index of 19 European countries (Austria, Belgium, Switzerland, Cyprus, Germany, Denmark, Spain, France, United Kingdom, Hungary, Ireland, Italy, Luxembourg, Latvia, Malta, Netherlands, Norway, Portugal and Sweden) for the period 2011-2022, for which complete time series data are available, using the System Generalized Method of Moments, which is specific to panel data analysis. The findings of the study show that financial secrecy (FG) and anti-money laundering (AML) variables have a statistically significant and negative effect on corruption perception (CPI), while the globalization (G) variable has a positive and significant effect on CPI. However, the financial development (FGE) variable does not have a significant effect on CPI, and the lagged value of the dependent variable tends to decrease in the perception of corruption by affecting the CPI in a decreasing direction.
Keywords : Finansal Gizlilik, Yolsuzluk, Küreselleşme, Kara Para Aklama, Sistem Genelleştirilmiş Momentler

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