Is corruption in China “out of control”? A comparison with the US in historical perspective
This paper compares corruption in China over the past 15years with corruption in the US between 1870 and 1930, periods that are roughly comparable in terms of real income per capita. Corruption indicators for both countries and both periods are constructed by tracking corruption news in prominent US newspapers. Several robustness checks confirm the reliability of the constructed corruption indices for both countries. The comparison indicates that corruption in the US in the early 1870s, when its real income per capita was about $2800 (in 2005 dollars), was 7–9 times higher than China’s corruption level in 1996, the corresponding year in terms of income per capita. By the time the US reached $7500 in 1928, approximately equivalent to China’s real income per capita in 2009, corruption was similar in both countries. The findings imply that, while corruption in China is an issue that merits attention, it is not at alarmingly high levels, compared to the US historical experience. In addition, the paper articulates a theoretical framework within which the relationship between corruption and economic development can be understood. The model is used to explain the “life-cycle” of corruption in the development process–rising at the early stages of development, and declining after modernization has taken place. Hence, as China continues its development process, corruption will likely decline.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Keith Blackburn & Niloy Bose & M. Emranul Haque, 2010.
"Endogenous corruption in economic development,"
Journal of Economic Studies,
Emerald Group Publishing, vol. 37(1), pages 4-25, January.
- K Blackburn & N Bose & M E Haque, 2002. "Endogenous Corruption in Economic Development," Centre for Growth and Business Cycle Research Discussion Paper Series 22, Economics, The Univeristy of Manchester.
- K Blackburn & N Bose & M E Haque, 2003. "Endogenous Corruption in Economic Development," The School of Economics Discussion Paper Series 0302, Economics, The University of Manchester.
- John Mcmillan & Pablo Zoido, 2004.
"How to Subvert Democracy: Montesinos in Peru,"
Journal of Economic Perspectives,
American Economic Association, vol. 18(4), pages 69-92, Fall.
- John McMillan & Pablo Zoido, 2004. "How to Subvert Democracy: Montesinos in Peru," Discussion Papers 03-030, Stanford Institute for Economic Policy Research.
- McMillan, John & Zoido, Pablo, 2004. "How to Subvert Democracy: Montesinos in Peru," Research Papers 1851r, Stanford University, Graduate School of Business.
- John McMillan & Pablo Zoido, 2004. "How to Subvert Democracy: Montesinos in Peru," CESifo Working Paper Series 1173, CESifo Group Munich.
- McMillan, John & Zoido, Paolo, 2004. "How to Subvert Democracy: Montesinos in Peru," CEPR Discussion Papers 4361, C.E.P.R. Discussion Papers.
- Gérard Roland, 2004.
"Transition and Economics: Politics, Markets, and Firms,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 026268148x, June.
- Gérard Roland, 2000. "Transition and Economics: Politics, Markets, and Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262182033, June.
- Shang-Jin Wei, 1997.
"How Taxing is Corruption on International Investors?,"
NBER Working Papers
6030, National Bureau of Economic Research, Inc.
- Shang-Jin Wei, 2000. "How Taxing is Corruption on International Investors?," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 1-11, February.
- Shang-Jin Wei, 1997. "How Taxing is Corruption on International Investors?," William Davidson Institute Working Papers Series 63, William Davidson Institute at the University of Michigan.
- Hongyi Li & Lixin Colin Xu & Heng-fu Zou, 2000.
"Corruption, Income Distribution, and Growth,"
CEMA Working Papers
472, China Economics and Management Academy, Central University of Finance and Economics.
- Javorcik, Beata S. & Wei, Shang-Jin, 2009.
"Corruption and cross-border investment in emerging markets: Firm-level evidence,"
Journal of International Money and Finance,
Elsevier, vol. 28(4), pages 605-624, June.
- Beata S. Javorcik & Shang-Jin Wei, 2009. "Corruption and Cross-Border Investment in Emerging Markets: Firm-Level Evidence," Working Papers 062009, Hong Kong Institute for Monetary Research.
- Barreto, Raul A., 2000. "Endogenous corruption in a neoclassical growth model," European Economic Review, Elsevier, vol. 44(1), pages 35-60, January.
- Bai, Jie & Jayachandran, Seema & Malesky, Edmund J. & Olken, Benjamin, 2013.
"Does Economic Growth Reduce Corruption? Theory and Evidence from Vietnam,"
CEPR Discussion Papers
9677, C.E.P.R. Discussion Papers.
- Jie Bai & Seema Jayachandran, 2013. "Does Economic Growth Reduce Corruption? Theory and Evidence from Vietnam," Working Papers id:5507, eSocialSciences.
- Jie Bai & Seema Jayachandran & Edmund J. Malesky & Benjamin A. Olken, 2013. "Does Economic Growth Reduce Corruption? Theory and Evidence from Vietnam," NBER Working Papers 19483, National Bureau of Economic Research, Inc.
- Yingyi Qian & Gerard Roland, .
"Federalism and the Soft Budget Constraint,"
97045, Stanford University, Department of Economics.
- Gary S. Becker & George J. Stigler, 1974. "Law Enforcement, Malfeasance, and Compensation of Enforcers," The Journal of Legal Studies, University of Chicago Press, vol. 3(1), pages 1-18, January.
- Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
- repec:cup:cbooks:9780521659123 is not listed on IDEAS
- repec:cup:cbooks:9780521632935 is not listed on IDEAS
- Edward L. Glaeser & Claudia Goldin, 2006. "Corruption and Reform: Introduction," NBER Chapters, in: Corruption and Reform: Lessons from America's Economic History, pages 2-22 National Bureau of Economic Research, Inc.
- Carlos D. Ramirez & Rong Rong, 2012. "China Bashing: Does Trade Drive the “Bad” News about China in the USA?," Review of International Economics, Wiley Blackwell, vol. 20(2), pages 350-363, 05.
- Isaac Ehrlich & Francis T. Lui, 1999. "Bureaucratic Corruption and Endogenous Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S270-S293, December.
- Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September.
When requesting a correction, please mention this item's handle: RePEc:eee:jcecon:v:42:y:2014:i:1:p:76-91. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.