Interrelation between Institutional Trust, Satisfaction of Economy, and Corruption Perception

Corruption perception indices are conventionally used as a proxy for mirroring the real corruption level in a country. This article studies the potential impact of the perception of institutional factors on corruption perception. Using a three-year survey dataset from all regions of Armenia, I argue that economic perception and trust in institutions directly and indirectly influence corruption perception by undermining individuals' satisfaction with the country's overall situation. Further mediation analysis manifests that satisfaction with the country's overall situation is the cornerstone linking corruption perception with economic perception and trust in institutions. Policy implications and further research avenues are discussed.