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Corruption and social interaction: Evidence from China

  • Dong, Bin
  • Torgler, Benno
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    To theoretically and empirically explore whether social interaction, either local and global, influences the incidence of corruption, we first present an interaction-based model which predicts that the level of corruption is positively associated with social interaction. We then empirically verify this theoretical prediction using within-country evidence at the province-level in China from 1998 to 2007. The panel data evidence clearly indicates that social interaction has a statistically significantly positive effect on the corruption rate in China. Our findings therefore underscore the relevance of social interaction in understanding corruption and point to important policy implications.

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    Article provided by Elsevier in its journal Journal of Policy Modeling.

    Volume (Year): 34 (2012)
    Issue (Month): 6 ()
    Pages: 932-947

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    Handle: RePEc:eee:jpolmo:v:34:y:2012:i:6:p:932-947
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505735

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