Corruption and perceived risk: a case of the 2011 Fukushima disaster

Purpose – Japan's 2011 natural disasters were accompanied by a devastating nuclear disaster in Fukushima. This paper used cross-country data obtained immediately after the Japanese disaster to explore how, and the extent to which, corruption affects the perception of citizens regarding the risk of nuclear accidents. The paper aims to discuss these issues. Design/methodology/approach – Endogeneity bias was controlled for using instrumental variables when the author conducted regression estimation. Findings – The cross-country analysis showed that citizens in less corrupt countries tend to perceive there to be a lower possibility of nuclear accident. Originality/value – The finding made it evident that transparency of government enables citizens to access accurate information, reducing information asymmetry between citizens and government.