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Corruption in Asia: Pervasiveness and arbitrariness

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  • Seung-Hyun Lee

    ()

  • Kyeungrae Oh

    ()

Abstract

How does one understand the differences and similarities of corruption among various Asian countries? We use a recent framework developed by Rodriguez, Uhlenbruck, and Eden ( 2005 ) to suggest that corruption has to be examined from two different dimensions: pervasiveness and arbitrariness. Using this framework, we ask why some Asian countries are able to achieve high levels of economic growth in the midst of high level corruption while other countries suffer from economic stagnation. We specifically suggest that more firms would bribe when pervasiveness is high, while fewer firms would bribe when arbitrariness is high. We also look into the implications on foreign direct investment. Copyright Springer Science+Business Media, LLC 2007

Suggested Citation

  • Seung-Hyun Lee & Kyeungrae Oh, 2007. "Corruption in Asia: Pervasiveness and arbitrariness," Asia Pacific Journal of Management, Springer, vol. 24(1), pages 97-114, March.
  • Handle: RePEc:kap:asiapa:v:24:y:2007:i:1:p:97-114 DOI: 10.1007/s10490-006-9027-y
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Geert Hofstede, 2007. "Asian management in the 21st century," Asia Pacific Journal of Management, Springer, vol. 24(4), pages 411-420, December.
    2. Xun Wu, 2009. "Determinants of Bribery in Asian Firms: Evidence from the World Business Environment Survey," Journal of Business Ethics, Springer, pages 75-88.
    3. Zenon Udani & Caterina Lorenzo-Molo, 2013. "When Servant Becomes Leader: The Corazon C. Aquino Success Story as a Beacon for Business Leaders," Journal of Business Ethics, Springer, pages 373-391.
    4. Fernando, Mario & Almeida, Shamika, 2012. "The organizational virtuousness of strategic corporate social responsibility: A case study of the Sri Lankan family-owned enterprise MAS Holdings," European Management Journal, Elsevier, vol. 30(6), pages 564-576.
    5. Lee, Keonbeom & Peng, Mike W. & Lee, Keun, 2008. "From diversification premium to diversification discount during institutional transitions," Journal of World Business, Elsevier, vol. 43(1), pages 47-65, January.
    6. Saul Estrin & Martha Prevezer, 2011. "The role of informal institutions in corporate governance: Brazil, Russia, India, and China compared," Asia Pacific Journal of Management, Springer, pages 41-67.
    7. Samer Khalil & Walid Saffar & Samir Trabelsi, 2015. "Disclosure Standards, Auditing Infrastructure, and Bribery Mitigation," Journal of Business Ethics, Springer, pages 379-399.
    8. Polona Domadenik & Janez Prašnikar & Jan Svejnar, 2016. "Political Connectedness, Corporate Governance, and Firm Performance," Journal of Business Ethics, Springer, pages 411-428.
    9. Demirbag, Mehmet & McGuinnness, Martina & Wood, Geoffrey & Bayyurt, Nizamettin, 2015. "Context, law and reinvestment decisions: Why the transitional periphery differs from other post-state socialist economies," International Business Review, Elsevier, vol. 24(6), pages 955-965.
    10. Pierre-Xavier Meschi, 2009. "Government corruption and foreign stakes in international joint ventures in emerging economies," Asia Pacific Journal of Management, Springer, pages 241-261.
    11. Frank Tipton, 2009. "Southeast Asian capitalism: History, institutions, states, and firms," Asia Pacific Journal of Management, Springer, pages 401-434.
    12. Hemmert, Martin & Kim, DaeSoo & Kim, Jisun & Cho, BooYun, 2016. "Building the supplier's trust: Role of institutional forces and buyer firm practices," International Journal of Production Economics, Elsevier, vol. 180(C), pages 25-37.
    13. Duanmu, Jing-Lin, 2011. "The effect of corruption distance and market orientation on the ownership choice of MNEs: Evidence from China," Journal of International Management, Elsevier, vol. 17(2), pages 162-174, June.

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    Keywords

    Corruption; Pervasiveness; Arbitrariness;

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