The Causes of Corruption: Evidence from China
AbstractIn this study we explore in detail the causes of corruption in China using two different sets of data at the regional level (provinces and cities). We observe that regions with more anti-corruption efforts, histories of British rule, higher openness, more access to media and relatively higher wages of government employees are markedly less corrupt; while social heterogeneity, regulation, abundance of resource and state-owned enterprises substantially breed regional corruption. Moreover, fiscal decentralization is discovered to depress corruption significantly, while administrative decentralization fosters local corruption. We also find that there is currently a positive relationship between corruption and economic development in China that is mainly driven by the transition to a market economy.
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Bibliographic InfoPaper provided by School of Economics and Finance, Queensland University of Technology in its series School of Economics and Finance Discussion Papers and Working Papers Series with number 257.
Length: 36 pages
Date of creation: 25 Mar 2010
Date of revision:
Corruption; China; Government; Decentralization; Deterrence; Social Heterogenity;
Other versions of this item:
- Bin Dong & Benno Torgler, 2010. "The Causes of Corruption: Evidence from China," Working Papers 2010.72, Fondazione Eni Enrico Mattei.
- Bin Dong & Benno Torgler, 2010. "The Causes of Corruption: Evidence from China," CREMA Working Paper Series 2010-07, Center for Research in Economics, Management and the Arts (CREMA).
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-24 (All new papers)
- NEP-DEV-2010-04-24 (Development)
- NEP-LAW-2010-04-24 (Law & Economics)
- NEP-LTV-2010-04-24 (Unemployment, Inequality & Poverty)
- NEP-POL-2010-04-24 (Positive Political Economics)
- NEP-SOC-2010-04-24 (Social Norms & Social Capital)
- NEP-TRA-2010-04-24 (Transition Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- The Causes and Consequences of Corruption: Evidence from China
by Ariel Goldring in Free Market Mojo on 2010-05-14 12:07:09
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"Causes of Corruption in Russia: A Disaggregated Analysis,"
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557, Institute of Economic Research, Hitotsubashi University.
- Belousova, Veronika & Goel, Rajeev K. & Korhonen, Iikka, 2011. "Causes of Corruption in Russia: A Disaggregated Analysis," BOFIT Discussion Papers 31/2011, Bank of Finland, Institute for Economies in Transition.
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