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Do Attitudes Towards Corruption Differ Across Cultures? Experimental Evidence from Australia, India, Indonesia andSingapore

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Author Info

  • L. Cameron
  • A. Chaudhuri
  • N. Erkal
  • L. Gangadharan

Abstract

This paper examines cultural differences in attitudes towards corruption by analysing individual-decision making in a corrupt experimental environment. Attitudes towards corruption play a critical role in the persistence of corruption. Our experiments differentiate between the incentives to engage in corrupt behaviour and the incentives to punish corrupt behaviour and allow us to explore whether, in environments characterized by lower levels of corruption, there is both a lower propensity to engage in corrupt behaviour and a higher propensity to punish corrupt behaviour. Based on experiments run in Australia (Melbourne), India (Delhi), Indonesia (Jakarta) and Singapore, we find that there is more variation in the propensities to punish corrupt behaviour than in the propensities to engage in corrupt behaviour across cultures. The results reveal that the subjects in India exhibit a higher tolerance towards corruption than the subjects in Australia while the subjects in Indonesia behave similarly to those in Australia. The subjects in Singapore have a higher propensity to engage in corruption than the subjects in Australia. We also vary our experimental design to examine the impact of a more effective punishment system and the effect of the perceived cost of bribery.

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Bibliographic Info

Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 943.

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Length: 50 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:mlb:wpaper:943

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Postal: Department of Economics, The University of Melbourne, 5th Floor, Economics and Commerce Building, Victoria, 3010, Australia
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Fax: +61 3 8344 6899
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Web page: http://www.economics.unimelb.edu.au
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Related research

Keywords: Corruption; Experiments; Punishment; Cultural Analysis;

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References

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Citations

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Cited by:
  1. Graf Lambsdorff, Johann & Frank, Björn, 2007. "Corrupt reciprocity: An experiment," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-51-07, University of Passau, Faculty of Business and Economics.
  2. Abigail Barr & Magnus Lindelow, 2005. "Intrinsic motivations on the development frontline: Do they exist? Do they endure?," Economics Series Working Papers GPRG-WPS-033, University of Oxford, Department of Economics.
  3. Klaus Abbink & Lars Moller & Sarah O’Hara, 2010. "Sources of Mistrust: An Experimental Case Study of a Central Asian Water Conflict," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 45(2), pages 283-318, February.
  4. Abigail Barr & Danila Serra, 2008. "The effects of externalities and framing on bribery in a petty corruption experiment," Economics Series Working Papers WPS/2008-24, University of Oxford, Department of Economics.
  5. Elizabeth Asiedu & James Freeman, 2008. "The Effect of Corruption on Investment Growth: Evidence from Firms in Latin America, Sub-Saharan Africa and Transition Countries," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 200802, University of Kansas, Department of Economics.
  6. Abigail Barr & Danila Serra, 2007. "Externality and framing effects in a bribery experiment," Economics Series Working Papers WPS/2007-16, University of Oxford, Department of Economics.
  7. Lambsdorff, Johann Graf & Frank, Björn, 2010. "Bribing versus gift-giving - An experiment," Journal of Economic Psychology, Elsevier, vol. 31(3), pages 347-357, June.
  8. Abigail Barr & Danila Serra, 2006. "Culture and Corruption," Economics Series Working Papers GPRG-WPS-040, University of Oxford, Department of Economics.
  9. Vivi Alatas & Lisa Cameron & Ananish Chaudhuri & Nisvan Erkal & Lata Gangadharan, 2006. "Gender and Corruption: Insights from an Experimental Analysis," Department of Economics - Working Papers Series 974, The University of Melbourne.

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