Deciphering the links: evaluating central bank transparency impact on corruption perception index in G20 countries
| Date | 13 August 2024 |
| Pages | 1-14 |
| DOI | https://doi.org/10.1108/JMLC-01-2024-0016 |
| Published date | 13 August 2024 |
| Author | Anas Al Qudah,Mahmoud Ali Hailat |
Deciphering the links: evaluating
central bank transparency impact on
corruption perception index
in G20 countries
Anas Al Qudah
Department of Finance, Faculty of Economics and Administrative Sciences,
Yarmouk University, Irbid, Jordan, and
Mahmoud Ali Hailat
Department of Economics, Yarmouk University,Irbid, Jordan
Abstract
Purpose –This study aims to explore the relationships between GDP growth, education spending, central
bank transparency (CBT) and accountability on the corruption perception index within the G20 countries,
emphasizingtheir combined effects and interdependencies.
Design/methodology/approach –Using the central bank transparencyindex (CBTI) introduced by Dinçer
et al. (2019), an analysis spanning from 2002 to 2019 was conducted on selected G20 countries, further
refining the results by excluding EUmembers. Data sources included World Bank statisticsand CBTI data.
The research deployed the heteroskedastic and contemporaneously correlated panel-corrected standarderror
model to detail the effectsof the aforementioned factors on the corruption index.
Findings –The study revealed no statistical evidence that economic growth had an effect on reducing
corruption. Education spending emerged as a potent tool in curbing corruption, especially in EU nations. A
strong correlation was identified between CBT and reduced corruption, consistent across G20 countries,
regardlessof EU affiliation. The insights emphasize the importanceof enhancing education spending and CBT
in combating corruption. For effective anti-corruption measures, countries are encouragedto invest more in
education, amplify internal checksand adopt transparent central bank policies. Further research could delve
into cultural,historical and political variables to understand corruptiondynamics comprehensively.
Originality/value –This study aspires to addressthe existing gaps in the literature and provide a substantial
contribution to the ongoing discourse and efforts to understand and mitigate corruption within the G20
countriesand globally.
Keywords Central bank transparency, Control of corruption, GDP growth, Education spending,
Accountability
Paper type Research paper
1. Introduction
Corruption remains a critical and pervasive issue globally, particularly among the G20
countries, which collectively represent significant economies and key players on the
international stage. These countries significantly influence global economic policies,
governance and development, making the study of corruption within their confines
particularly salient. Corruption represents a significant impediment to economic
development, social justice and sustainable growth. It distorts competitive environments,
undermines democratic institutions and causes the misallocation of resources, leading to the
compromise of welfare and social cohesion (Zouaoui et al., 2017). Recognizing the depth
and ramifications of this problem, especially within the G20 countries, we have undertaken
Journal of Money
Laundering
Control
1
Journalof Money Laundering
Control
Vol.28 No. 1, 2025
pp. 1-14
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-01-2024-0016
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm
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