Does the Internet Reduce Corruption? Evidence from U.S. States and across Countries

We test the hypothesis that the Internet is a useful technology for controlling corruption. In order to do so, we develop a novel identification strategy for Internet diffusion. Power disruptions damage digital equipment, which increases the user cost of IT capital, and thus lowers the speed of Inte...

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Main Authors: Barnebeck Andersen, Thomas, Bentzen, Jeanet, Dalgaard, Carl-Johan, Selaya, Pablo
Format: Journal Article
Language:en_US
Published: World Bank 2013
Subjects:
Online Access:http://hdl.handle.net/10986/13481
id okr-10986-13481
recordtype oai_dc
spelling okr-10986-134812021-04-23T14:03:08Z Does the Internet Reduce Corruption? Evidence from U.S. States and across Countries Barnebeck Andersen, Thomas Bentzen, Jeanet Dalgaard, Carl-Johan Selaya, Pablo basic codes Computer equipment Computer memory Computers devices digital e-mail equipment information storage innovations memory cards networks new technologies new technology online systems sensors servers technological change transistors We test the hypothesis that the Internet is a useful technology for controlling corruption. In order to do so, we develop a novel identification strategy for Internet diffusion. Power disruptions damage digital equipment, which increases the user cost of IT capital, and thus lowers the speed of Internet diffusion. A natural phenomenon causing power disruptions is lightning activity, which makes lightning a viable instrument for Internet diffusion. Using ground-based lightning detection censors as well as global satellite data, we construct lightning density data for the contiguous U.S. states and a large cross section of countries. Empirically, lightning density is a strong instrument for Internet diffusion and our IV estimates suggest that the emergence of the Internet has served to reduce the extent of corruption across U.S. states and across the world. 2013-05-21T13:50:43Z 2013-05-21T13:50:43Z 2011-10-18 Journal Article World Bank Economic Review 1564-698X doi:10.1093/wber/lhr025 http://hdl.handle.net/10986/13481 en_US World Bank Economic Review;25(3) CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank World Bank Journal Article Africa South Asia Latin America UNITED STATES
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language en_US
topic basic
codes
Computer equipment
Computer memory
Computers
devices
digital
e-mail
equipment
information storage
innovations
memory cards
networks
new technologies
new technology
online systems
sensors
servers
technological change
transistors
spellingShingle basic
codes
Computer equipment
Computer memory
Computers
devices
digital
e-mail
equipment
information storage
innovations
memory cards
networks
new technologies
new technology
online systems
sensors
servers
technological change
transistors
Barnebeck Andersen, Thomas
Bentzen, Jeanet
Dalgaard, Carl-Johan
Selaya, Pablo
Does the Internet Reduce Corruption? Evidence from U.S. States and across Countries
geographic_facet Africa
South Asia
Latin America
UNITED STATES
relation World Bank Economic Review;25(3)
description We test the hypothesis that the Internet is a useful technology for controlling corruption. In order to do so, we develop a novel identification strategy for Internet diffusion. Power disruptions damage digital equipment, which increases the user cost of IT capital, and thus lowers the speed of Internet diffusion. A natural phenomenon causing power disruptions is lightning activity, which makes lightning a viable instrument for Internet diffusion. Using ground-based lightning detection censors as well as global satellite data, we construct lightning density data for the contiguous U.S. states and a large cross section of countries. Empirically, lightning density is a strong instrument for Internet diffusion and our IV estimates suggest that the emergence of the Internet has served to reduce the extent of corruption across U.S. states and across the world.
format Journal Article
author Barnebeck Andersen, Thomas
Bentzen, Jeanet
Dalgaard, Carl-Johan
Selaya, Pablo
author_facet Barnebeck Andersen, Thomas
Bentzen, Jeanet
Dalgaard, Carl-Johan
Selaya, Pablo
author_sort Barnebeck Andersen, Thomas
title Does the Internet Reduce Corruption? Evidence from U.S. States and across Countries
title_short Does the Internet Reduce Corruption? Evidence from U.S. States and across Countries
title_full Does the Internet Reduce Corruption? Evidence from U.S. States and across Countries
title_fullStr Does the Internet Reduce Corruption? Evidence from U.S. States and across Countries
title_full_unstemmed Does the Internet Reduce Corruption? Evidence from U.S. States and across Countries
title_sort does the internet reduce corruption? evidence from u.s. states and across countries
publisher World Bank
publishDate 2013
url http://hdl.handle.net/10986/13481
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