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Corruption and social interaction: Evidence from China

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  • Dong, Bin
  • Torgler, Benno
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    Abstract

    To theoretically and empirically explore whether social interaction, either local and global, influences the incidence of corruption, we first present an interaction-based model which predicts that the level of corruption is positively associated with social interaction. We then empirically verify this theoretical prediction using within-country evidence at the province-level in China from 1998 to 2007. The panel data evidence clearly indicates that social interaction has a statistically significantly positive effect on the corruption rate in China. Our findings therefore underscore the relevance of social interaction in understanding corruption and point to important policy implications.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Policy Modeling.

    Volume (Year): 34 (2012)
    Issue (Month): 6 ()
    Pages: 932-947

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    Handle: RePEc:eee:jpolmo:v:34:y:2012:i:6:p:932-947

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    Web page: http://www.elsevier.com/locate/inca/505735

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    Keywords: Corruption; Social interaction; China;

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    Cited by:
    1. Guenther G. Schulze & Bambang Suharnoko Sjahrir & Nikita Zakharov, 2013. "Corruption in Russia," Discussion Paper Series 22, Department of International Economic Policy, University of Freiburg, revised Apr 2013.

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