NATIONAL UNIVERSITY OF MODERN LANGUAGES

Department of Management Sciences

Research Paper Review 1

Submitted By
Junaid Iqbal Soomro (13603)
MBA 2 years Evening

Submitted To
Dr. Muhammad Nawaz Qaisar

1
Research Paper Review 1:
The Impact of Culture on Corruption,
Gross Domestic Product, and Human
Development
Purpose and Key Objectives:
Following are the key objectives and purposes of this research:

 To find out the impact of culture on corruption and its consequences.

 To generate an appropriate measurement approach to find the relation in between distribution of
power and corruption.
 To find out the importance of culture in increasing the GDP while reducing corruption.
 To visualize the effects of culture in human development.
Significance/Importance of Research:
Corruption is a constant in the society and occurs in all civilizations. This research Shows the culture as
an important aspect in the corruption and its effect on GDPP and Human development index. This
Research shows the steeper distribution of power induces more corruption and results negative
consequences.

Research Methodology:
Mixed Method Approach is used to collect the data from 85 nations across the world. In this research
methodology both quantitative and qualitative variables are finalized and data is obtained either by
surveys or interviews or from the feedbacks of the target population. In this research multi national
cultural surveys are used in 85 nations.

Sampling techniques / Sample Size:

Sampling technique is multinational cultural surveys for getting the feedback from the nations. Sample
size is 85 nations.

Data collection Scale:

Interval Data collection scale is used in this research. Interval Scale is defined as a numerical scale
where the order of the variables is known as well as the difference between these variables.
Variables that have familiar, constant, and computable differences are classified using the
Interval scale. It is easy to remember the primary role of this scale too, ‘Interval’ indicates
‘distance between two entities’, which is what Interval scale helps in achieving.  

These scales are effective as they open doors for the statistical analysis of provided data. Mean,
median, or mode can be used to calculate the central tendency in this scale. The only drawback
of this scale is that there no pre-decided starting point or a true zero value.
2
Data analysis Techniques/ Tools:
Path analysis technique is used in this research methodology in which structural equation is made with
variables and is solved with tools to find correlation in between variables. Researcher has preferred path
analysis over regression and has justified with two reasons for selecting path analysis over regression.
Tools used are SPSS 22 and LISREL 9.1 for statistical analysis.

Key Results:
Following are the key results of this research:

 Power Balanced Freedom explains 62% of national differences in corruption (1).

 PBF has positive effects on Gross Domestic Product (GDP, 72%) and Inequality Adjusted
Human Development (IHDI, 66%, including Life Expectancy, Income, and Education) (2).
 No reverse effect of GDP on (Corruption Perception Index) CPI could be found (3).
 Low corruption had the strongest direct effect on IHDI (4).
Conclusion:
Culture as guidance for human minds, emotions, and actions effects many organizational structures and
norms of a society. The three culture variables that are PBF, Gender Egalitarianism, and Former Colonial
Status can predict the occurrence and depth of corruption and its effects if properly measured.

Limitations:
Following are the limitations of this research paper:

 Many smaller countries are not considered in the survey.

 The included countries in the study represents 86 percent of the world’s population of 2011.
 Some variables had missing values and correlation is calculated pair wise.
 Hofstede’s and GLOBE’s dimensions were created from survey data collected many years ago.
Change in culture might affect the results.
 Corruption Perception Index does not include the legal corruption of influence markets.
 IHDI does not include negative external effects on the environment that would provide a more
appropriate picture of real well-being within a society.
Future Research Directions:
Following are the future research directions:

 Replication study can be done on newer survey data as culture varies by time.
 Those smaller countries which were not considered, can be studied on this model proposed in the
research.
 Research can be done on those variables which had no values and were assumed.

References:

(1), (2), (3), (4) Scholl, Wolfgang Schermuly, Carsten C. The Impact of Culture on Corruption, Gross
Domestic Product, and Human Development. Journal of Business Ethics 162, 2020.