Jurnal Akademi Akuntansi (JAA)
Vol. 9 No. 4 (2026): Jurnal Akademi Akuntansi (JAA)

Rule of law and corruption: the mediating role of government effectiveness in cross-country

Novita Khoirunnisa (Faculty of Economics and Business Education, Indonesia University of Education, Bandung, Indonesia)
Rozmita Dewi Yuniarti Rozali (Faculty of Economics and Business Education, Indonesia University of Education, Bandung, Indonesia)
Denny Andriana (Faculty of Economics and Business Education, Indonesia University of Education, Bandung, Indonesia)



Article Info

Publish Date
05 Oct 2026

Abstract

Purpose:  This study aims to examine the effect of the rule of law on corruption levels, with government effectiveness as a mediating variable, using a cross-country sample for the period 2019-2024. Methodology/approach: Population comprises 193 member states of the United Nations. Using purposive sampling, 164 countries were selected, resulting in a balanced panel dataset of 984 observations covering the 2019-2024 period. The data were analyzed using a fixed-effects panel regression model, followed by a mediation test using the Sobel test. Findings:  The rule of law has a positive and significant effect on government effectiveness, government effectiveness has a significant effect on reducing corruption, the rule of law also has a significant direct effect on reducing corruption, and government effectiveness partially mediate the effect of the rule of law on corruption. Practical and Theoritical contribution/Originality: Theoretically, it integrates Institutional Theory and Klitgaard's Theory of Corruption by showing that the coercive pressure of law enforcement not only produces a more institutionalized bureaucratic structure. Practically, these findings suggest that anti-corruption strategies should combine law enforcement with bureaucratic reform simultaneously. Research Limitation:  This study examines average effects across a combined sample of 164 countries without distinguishing regional context, level of economic development, or political system, such that the findings reflect general patterns and may not apply uniformly across country groups.

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Journal Info

Abbrev

jaa

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Akademi Akuntansi (JAA) focuses on the research related on accounting and finance that are relevant for the development of the theory and practice of accounting in Indonesia and southeast asia. JAA covered various of research approach, namely: quantitative, qualitative and mixed method. JAA ...