Advanced Search
MyIDEAS: Login to save this paper or follow this series

Regulation and corporate corruption: new evidence from the telecom sector

Contents:

Author Info

  • Berg, Sanford V
  • Jiang, Liangliang
  • Lin, Chen

Abstract

This paper examines how government regulation in developing countries affects the form of corruption between business customers and service providers in the telecom sector. We match the World Bank enterprise-level data on bribes with a unique cross-country telecom regulation dataset collected by Wallsten et al. (2004), finding that 1) strong regulatory substance (the content of regulation) and regulatory governance reduce corruption; 2) competition and privatization reduces corruption; 3) the effects of regulatory substance on corruption control are stronger in countries with state-owned or partially state-owned telecoms, greater competition, and higher telecommunication fees; and 4) bureaucratic quality exert substitution effects to regulatory substance in deterring corruption. Overall, our results suggest that regulatory strategies that reduce information asymmetry and increase accountability tend to reduce illegal side-payments for connections.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://mpra.ub.uni-muenchen.de/32947/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 32947.

as in new window
Length:
Date of creation: 18 Aug 2011
Date of revision:
Handle: RePEc:pra:mprapa:32947

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: Telecommunications; Regulation; Corruption;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Nejat Anbarci & Monica Escaleras & Charles A. Register, 2009. "The Ill Effects of Public Sector Corruption in the Water and Sanitation Sector," Land Economics, University of Wisconsin Press, vol. 85(2), pages 363-377.
  2. Kalt, Joseph P & Zupan, Mark A, 1984. "Capture and Ideology in the Economic Theory of Politics," American Economic Review, American Economic Association, American Economic Association, vol. 74(3), pages 279-300, June.
  3. Dreher, Axel & Kotsogiannis, Christos & McCorriston, Steve, 2007. "Corruption around the world: Evidence from a structural model," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 443-466, September.
  4. Simeon Djankov & Rafael La Porta & Florencio LopezdeSilanes & Andrei Shleifer, 2000. "The Regulation of Entry," NBER Working Papers 7892, National Bureau of Economic Research, Inc.
  5. Beck, T.H.L. & Demirguc-Kunt , A. & Levine, R., 2006. "Bank supervision and corruption in lending," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3125431, Tilburg University.
  6. Emerson, Patrick M., 2006. "Corruption, competition and democracy," Journal of Development Economics, Elsevier, Elsevier, vol. 81(1), pages 193-212, October.
  7. Fan, C. Simon & Lin, Chen & Treisman, Daniel, 2009. "Political decentralization and corruption: Evidence from around the world," Journal of Public Economics, Elsevier, Elsevier, vol. 93(1-2), pages 14-34, February.
  8. Martimort, David & Straub, Stéphane, 2009. "Infrastructure privatization and changes in corruption patterns: The roots of public discontent," Journal of Development Economics, Elsevier, Elsevier, vol. 90(1), pages 69-84, September.
  9. Ashley C. Brown & Jon Stern & Bernard Tenenbaum, 2006. "Handbook for Evaluating Infrastructure Regulatory Systems," World Bank Publications, The World Bank, number 7030, August.
  10. Kenny, Charles, 2009. "Is there an anticorruption agenda in utilities?," Utilities Policy, Elsevier, Elsevier, vol. 17(2), pages 156-165, June.
  11. Laffont,Jean-Jacques, 2005. "Regulation and Development," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521840187.
  12. Antonio Estache & A. Goicoechea & Lourdes Trujillo, 2008. "Utilities reforms and corruption in developing countries," ULB Institutional Repository 2013/43908, ULB -- Universite Libre de Bruxelles.
  13. Gasmi, Farid & Recuero Virto, Laura, 2009. "The Determinants and Impact of Telecommunications Reforms in Developing Countries," TSE Working Papers, Toulouse School of Economics (TSE) 09-092, Toulouse School of Economics (TSE).
  14. Seim, Line Tndel & Sreide, Tina, 2009. "Bureaucratic complexity and impacts of corruption in utilities," Utilities Policy, Elsevier, Elsevier, vol. 17(2), pages 176-184, June.
  15. Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1203-50, November.
  16. repec:reg:wpaper:124 is not listed on IDEAS
  17. Sam Peltzman, 1976. "Toward a More General Theory of Regulation," NBER Working Papers 0133, National Bureau of Economic Research, Inc.
  18. Jean-Jacques LAFFONT & Jean TIROLE, 1990. "The Politics of Government Decision-Making : a Theory of Regulatory Capture," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP), Université de Lausanne, Faculté des HEC, DEEP 9004, Université de Lausanne, Faculté des HEC, DEEP.
  19. Svensson, Jakob, 2002. "Who Must Pay Bribes and How Much? Evidence from a cross-section of firms," Seminar Papers, Stockholm University, Institute for International Economic Studies 713, Stockholm University, Institute for International Economic Studies.
  20. Sanford Berg & Chen Lin & Valeriy Tsaplin, 2005. "Regulation of State-Owned and Privatized Utilities: Ukraine Electricity Distribution Company Performance," Journal of Regulatory Economics, Springer, Springer, vol. 28(3), pages 259-287, November.
  21. Beck, T.H.L. & Demirgüç-Kunt, A. & Levine, R., 2003. "Law, endowments, and finance," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3125510, Tilburg University.
  22. Levy, Brian & Spiller, Pablo T, 1994. "The Institutional Foundations of Regulatory Commitment: A Comparative Analysis of Telecommunications Regulation," Journal of Law, Economics and Organization, Oxford University Press, Oxford University Press, vol. 10(2), pages 201-46, October.
  23. Bose, Niloy & Capasso, Salvatore & Murshid, Antu Panini, 2008. "Threshold Effects of Corruption: Theory and Evidence," World Development, Elsevier, Elsevier, vol. 36(7), pages 1173-1191, July.
  24. repec:reg:rpubli:124 is not listed on IDEAS
  25. Röller, Lars-Hendrik & Waverman, Leonard, 2000. "Telecommunications Infrastructure And Economic Development: A Simultaneous Approach," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2399, C.E.P.R. Discussion Papers.
  26. Wallsten, Scott & Clarke, George & Haggarty, Luke & Kaneshiro, Rosario & Noll, Roger & Shirley, Mary & Lixin Colin Xu, 2004. "New tools for studying network industry reforms in developing countries : the telecommunications and electricity regulation database," Policy Research Working Paper Series 3286, The World Bank.
  27. Aidt, Toke & Dutta, Jayasri & Sena, Vania, 2008. "Governance regimes, corruption and growth: Theory and evidence," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 195-220, June.
  28. Houston, Joel F. & Lin, Chen & Ma, Yue, 2011. "Media ownership, concentration and corruption in bank lending," Journal of Financial Economics, Elsevier, Elsevier, vol. 100(2), pages 326-350, May.
  29. Colin Xu, Lixin & Li, Wei & Zhen-Wei Qiang, Christine, 2001. "The Political Economy of Privatization and Competition: Cross-Country Evidence from the Telecommunications Sector," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2825, C.E.P.R. Discussion Papers.
  30. Barth, James R. & Lin, Chen & Lin, Ping & Song, Frank M., 2009. "Corruption in bank lending to firms: Cross-country micro evidence on the beneficial role of competition and information sharing," Journal of Financial Economics, Elsevier, Elsevier, vol. 91(3), pages 361-388, March.
  31. Jon Stern, 1994. "Economic regulation in Central and Eastern Europe 1," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 2(3), pages 391-398, 09.
  32. David Martimort & Stephane Straub, 2006. "Privatization and Changes in Corruption Patterns: The Roots of Public Discontent," ESE Discussion Papers, Edinburgh School of Economics, University of Edinburgh 147, Edinburgh School of Economics, University of Edinburgh.
  33. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, Elsevier, vol. 76(3), pages 399-457, June.
  34. Dal Bo, Ernesto & Rossi, Martin A., 2007. "Corruption and inefficiency: Theory and evidence from electric utilities," Journal of Public Economics, Elsevier, Elsevier, vol. 91(5-6), pages 939-962, June.
  35. Hongbin Cai & Hanming Fang & Lixin Colin Xu, 2011. "Eat, Drink, Firms, Government: An Investigation of Corruption from the Entertainment and Travel Costs of Chinese Firms," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 54(1), pages 55 - 78.
  36. Clarke, George R. G. & Xu, Lixin Colin, 2004. "Privatization, competition, and corruption: how characteristics of bribe takers and payers affect bribes to utilities," Journal of Public Economics, Elsevier, Elsevier, vol. 88(9-10), pages 2067-2097, August.
  37. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262121743, December.
  38. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
  39. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2006. "Governance matters V: aggregate and individual governance indicators for 1996 - 2005," Policy Research Working Paper Series 4012, The World Bank.
  40. Ai, Chunrong & Sappington, David E.M., 2005. "Reviewing the impact of incentive regulation on U.S. telephone service quality," Utilities Policy, Elsevier, Elsevier, vol. 13(3), pages 201-210, September.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Lau, Chi Keung Marco & Demir, Ender & Bilgin, Mehmet Huseyin, 2013. "Experience-based corporate corruption and stock market volatility: Evidence from emerging markets," Emerging Markets Review, Elsevier, Elsevier, vol. 17(C), pages 1-13.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:32947. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.