Reducing Corruption for Sustainability: Agency Theory Perspective
Abstract
Abstract This study focuses on examining the influence of human resource (HR) quality and political stability on corruption in countries across Asia, Europe, and the Americas, with inflation as a control variable. The analysis was conducted using panel data regression techniques, utilizing panel data from 62 countries over the 2020–2024 period. HR quality is measured using the HR competitiveness index, corruption is measured using the corruption perception index, political stability is measured using the political stability index, and inflation is measured using the inflation rate. The research data were sourced from the International Institute for Management Development, Transparency International, and the World Bank. The results show that HR quality has been proven to reduce corruption, while political stability has been shown to play a role in encouraging increased corruption. Additional testing produced similar (robust) findings. These findings enrich the literature on corruption across continents by confirming that human development functions as an instrument for mitigating corruption, while increasing political stability actually encourages the growth of corrupt practices. Practically, the results of this study encourage governments to prioritize investment in HR development as a strategy for creating clean and sustainable governance.
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