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Causes of corruption: Evidence from China

  • Dong, Bin
  • Torgler, Benno
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    This study explores the causes of corruption in China using provincial panel data. Using both fixed effects and instrumental variables approaches, we find that provinces with greater anti-corruption efforts, higher educational attainment, historic influence from Anglo-American church universities, greater openness, more access to media, higher relative wages of government employees and a greater representation of women in the legislature are markedly less corrupt; whereas social heterogeneity, regulation and resources abundance breed substantial corruption. We also find that fiscal decentralization depresses corruption significantly. Finally, we identify a positive relationship between corruption and economic development in China, which is driven primarily by the transition to a market economy.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1043951X12000995
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    Article provided by Elsevier in its journal China Economic Review.

    Volume (Year): 26 (2013)
    Issue (Month): C ()
    Pages: 152-169

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    Handle: RePEc:eee:chieco:v:26:y:2013:i:c:p:152-169
    Contact details of provider: Web page: http://www.elsevier.com/locate/chieco

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