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Corruption: Supply-Side and Demand-Side Solutions

In: Development in India

Author

Listed:
  • Avinash K. Dixit

    (Princeton University)

Abstract

As any other economic transaction, corruption too has demand and supply dimensions. The focus thus far has been on the demand side, viz., government trying to control its own officials. Dixit shifts the attention to the supply side, viz., firms. He proposes that business community itself could set a norm of ‘no bribes’ and enforce it through ostracism such as ‘not doing business with those firms who give bribes’. Dixit suggests that largest firms could potentially take the lead as they may be better able to withstand initial losses till the norm takes roots.

Suggested Citation

  • Avinash K. Dixit, 2016. "Corruption: Supply-Side and Demand-Side Solutions," India Studies in Business and Economics, in: S. Mahendra Dev & P.G. Babu (ed.), Development in India, edition 127, chapter 0, pages 57-68, Springer.
    • Handle: RePEc:spr:isbchp:978-81-322-2541-6_4
    DOI: 10.1007/978-81-322-2541-6_4
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    Cited by:

    1. Gauthier, Bernard & Goyette, Jonathan & Kouamé, Wilfried A.K., 2021. "Why do firms pay bribes? Evidence on the demand and supply sides of corruption in developing countries," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 463-479.
    2. Leonardo A. Rocha & Maria Ester S. Dal Poz & Patrícia V.P.S. Lima & Ahmad S. Khan & Napiê G. A. Silva, 2019. "Corruption, bureaucracy and other institutional failures: the “cancer†of innovation and development," Economics Bulletin, AccessEcon, vol. 39(3), pages 1740-1754.
    3. Dana Nedea & Ioan Petrișor, 2019. "A methodology for strategic diagnosis of business corruption behaviours using network analysis," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 5(6), pages 323-329.

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