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Border is better than distance? Contagious corruption in one belt one road economies

Author

Listed:
  • Gen-Fu Feng

    (Xi’an Jiaotong University)

  • Bo Sui

    (Xi’an Jiaotong University)

  • Min-Yi Dong

    (Xi’an Jiaotong University)

  • Chun-xia Jiang

    (Middlesex University Business School)

  • Chun-Ping Chang

    (Xi’an Jiaotong University
    Shih Chien University)

Abstract

Employing data of one belt one road (OBOR) countries from 2002 to 2013, this study compares the contagious corruption difference between geographic border and distance through the dynamic spatial econometric model. The empirical results not only confirm that corruption in OBOR countries exists under various contagious channels, but also indicate that border effects, serving as contagious channels for corruption, are better than distance effects. The empirical implication is that OBOR countries with a common border tend to possess contagious corruption due to the hosts’ demonstration effect and the convenience of transferring illegal assets. We advise that those OBOR countries should enhance the supervision of cash flow, look for any opportunity of kicking back a portion of the stolen money, and establish a specific task force on corruption.

Suggested Citation

  • Gen-Fu Feng & Bo Sui & Min-Yi Dong & Chun-xia Jiang & Chun-Ping Chang, 2018. "Border is better than distance? Contagious corruption in one belt one road economies," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(4), pages 1909-1928, July.
    • Handle: RePEc:spr:qualqt:v:52:y:2018:i:4:d:10.1007_s11135-017-0579-3
    DOI: 10.1007/s11135-017-0579-3
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    More about this item

    Keywords

    Contagious corruption; Border and distance effect; Spatial channels; One belt one road;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

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