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Corruption and Political Competition

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Author Info

  • Richard Damania

    (Adelaide University)

  • Erkan Yalcin

    (Yeditepe University)

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    Abstract

    There is a growing evidence that political corruption is often closely associated with the rent seeking activities of special interest groups. This paper examines the nature of the interaction between the lobbying activities of special interest groups and the incidence of political corruption and determines whether electoral competition can eliminate political corruption. We obtain some striking results. Greater electoral competition serves to lessen policy distortions. However, this in turn stimulates more intense lobbying which increases the scope of corrupt behavior. It is shown that electoral competition merely serves to alter the type of corruption that eventuates, but cannot eliminate it.

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    File URL: http://128.118.178.162/eps/mic/papers/0510/0510012.pdf
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    Bibliographic Info

    Paper provided by EconWPA in its series Microeconomics with number 0510012.

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    Length: 16 pages
    Date of creation: 24 Oct 2005
    Date of revision:
    Handle: RePEc:wpa:wuwpmi:0510012

    Note: Type of Document - pdf; pages: 16
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    Web page: http://128.118.178.162

    Related research

    Keywords: Corruption; Lobbying; Political Competition;

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    References

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    1. Per G. Fredriksson, 1999. "The Political Economy of Trade Liberalization and Environmental Policy," Southern Economic Journal, Southern Economic Association, vol. 65(3), pages 513-535, January.
    2. Manion, Melanie, 1996. "Corruption by Design: Bribery in Chinese Enterprise Licensing," Journal of Law, Economics and Organization, Oxford University Press, vol. 12(1), pages 167-95, April.
    3. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
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    Citations

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    Cited by:
    1. Nauro F. Campos & Francesco Giovannoni, 2006. "Lobbying, Corruption and Political Influence," CEDI Discussion Paper Series 06-14, Centre for Economic Development and Institutions(CEDI), Brunel University.
    2. Campos, Nauro F & Giovannoni, Francesco, 2008. "Lobbying, Corruption and Other Banes," CEPR Discussion Papers 6962, C.E.P.R. Discussion Papers.

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