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Causes of corruption: Evidence from China

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  • Dong, Bin
  • Torgler, Benno

Abstract

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.

Suggested Citation

  • Dong, Bin & Torgler, Benno, 2013. "Causes of corruption: Evidence from China," China Economic Review, Elsevier, vol. 26(C), pages 152-169.
  • Handle: RePEc:eee:chieco:v:26:y:2013:i:c:p:152-169 DOI: 10.1016/j.chieco.2012.09.005
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    Cited by:

    1. Xu, Xixiong & Li, Yaoqin & Liu, Xing & Gan, Weiyu, 2017. "Does religion matter to corruption? Evidence from China," China Economic Review, Elsevier, vol. 42(C), pages 34-49.
    2. Qu, Guangjun & Sylwester, Kevin & Wang, Feng, 2016. "Anticorruption and Growth: Evidence from China," MPRA Paper 72190, University Library of Munich, Germany.
    3. Martin Gustafsson & Carol Nuga Deliwe, 2017. "Rotten apples or just apples and pears? Understanding patterns consistent with cheating in international test data," Working Papers 17/2017, Stellenbosch University, Department of Economics.
    4. Hakimi, Abdelaziz & Hamdi, Helmi, 2015. "How Corruption affect Growth in MENA region? Fresh Evidence from a Panel Cointegration Analysis," MPRA Paper 63750, University Library of Munich, Germany.
    5. You, Jing & Nie, Huihua, 2017. "Who determines Chinese firms' engagement in corruption: Themselves or neighbors?," China Economic Review, Elsevier, vol. 43(C), pages 29-46.
    6. Maurizio Lisciandra & Emanuele Millemaci, 2017. "The economic effect of corruption in Italy: a regional panel analysis," Regional Studies, Taylor & Francis Journals, vol. 51(9), pages 1387-1398, September.
    7. repec:eee:jcecon:v:45:y:2017:i:3:p:498-519 is not listed on IDEAS
    8. Qinxuan Gu & Thomas Tang & Wan Jiang, 2015. "Does Moral Leadership Enhance Employee Creativity? Employee Identification with Leader and Leader–Member Exchange (LMX) in the Chinese Context," Journal of Business Ethics, Springer, vol. 126(3), pages 513-529, February.
    9. Antonis M. Koumpias & Jorge Martinez-Vazquez & Eduardo Sanz-Arcega, 2015. "Housing Bubbles and Zoning Corruption: Evidence from Greece and Spain," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1505, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.

    More about this item

    Keywords

    Corruption; China; Government; Decentralization; Social heterogeneity;

    JEL classification:

    • 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

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