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Leadership selection, internal promotion, and bureaucratic corruption in less developed polities

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  • James E. Rauch

Abstract

The establishment of a professional government bureaucracy in place of political appointees is an important component of an enabling environment for private enterprise. I show that internal promotion can help to bring to power individuals who highly value (relative to income) imposition of their preferences over collective goods on the public. Such individuals restrain the corruption of their subordinates as a byproduct of their efforts to implement their preferences using tax revenue. As a result, large-scale and petty corruption tend to move together and both tend to be lower the longer the practice of internal promotion has been in place.

Suggested Citation

  • James E. Rauch, 2001. "Leadership selection, internal promotion, and bureaucratic corruption in less developed polities," Canadian Journal of Economics, Canadian Economics Association, vol. 34(1), pages 240-258, February.
  • Handle: RePEc:cje:issued:v:34:y:2001:i:1:p:240-258
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    Cited by:

    1. Audrey Hu & Liang Zhou, 2007. "Selecting less Corruptible Bureaucrats," Tinbergen Institute Discussion Papers 07-096/1, Tinbergen Institute.
    2. Che, Jiahua & Chung, Kim-Sau & Qiao, Xue, 2013. "The good, the bad, and the civil society," Journal of Public Economics, Elsevier, vol. 106(C), pages 68-76.

    More about this item

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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