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Why is Corruption Tolerated?

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  • Enrico Colombatto

Abstract

It is maintained that a closer analysis of the features of the underlying contract reveals that under many circumstances corruption is in fact a rational and understandable reaction to institutional failures, which are often far from accidental. Sometimes it can even be considered legitimate, when instrumental in achieving goals shared by the vast majority of the electorate. To this purpose, three different stylized institutional frameworks are analyzed: developed, totalitarian and transition countries. The origin, scope and consequences of corruption vary significantly across the different frameworks. The normative conclusions should therefore be adjusted accordingly. Copyright Kluwer Academic Publishers 2003

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  • Enrico Colombatto, 2003. "Why is Corruption Tolerated?," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 16(4), pages 363-379, December.
    • Handle: RePEc:kap:revaec:v:16:y:2003:i:4:p:363-379
    DOI: 10.1023/A:1027349206371
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    3. Akouwerabou B. Denis, 2016. "Entrepreneurs Establishing Political Connection," SAGE Open, , vol. 6(3), pages 21582440166, August.
    4. Huang, Chiung-Ju, 2016. "Is corruption bad for economic growth? Evidence from Asia-Pacific countries," The North American Journal of Economics and Finance, Elsevier, vol. 35(C), pages 247-256.
    5. Ren, Yi-Shuai & Ma, Chao-Qun & Apergis, Nicholas & Sharp, Basil, 2021. "Responses of carbon emissions to corruption across Chinese provinces," Energy Economics, Elsevier, vol. 98(C).
    6. Dramane Abdoulaye, 2022. "Corruption, property rights and economic growth in Africa: empirical evidence from natural resource rich countries," Economics Bulletin, AccessEcon, vol. 42(4), pages 2117-2134.
    7. Benjamin Powell & G.P. Manish & Malavika Nair, 2010. "Corruption, Crime and Economic Growth," Chapters, in: Bruce L. Benson & Paul R. Zimmerman (ed.), Handbook on the Economics of Crime, chapter 13, Edward Elgar Publishing.
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    9. Eleftherios Goulas & Athina Zervoyianni, 2013. "Economic growth and crime: does uncertainty matter?," Applied Economics Letters, Taylor & Francis Journals, vol. 20(5), pages 420-427, March.
    10. Zhang Yu & Muhammad Umer Quddoos & Syed Abdul Rehman Khan & Muhammad Munir Ahmad & Laeeq Razzak Janjua & Muhammad Sajid Amin & Abdul Haseeb, 2023. "Investigating the moderating impact of crime and corruption on the economic growth of Bangladesh: Fresh insights," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 26(2), pages 185-207, June.
    11. Anisah Alfada, 2019. "Corruption and Economic Growth in ASEAN Member Countries," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 65, pages 111-131, Desember.
    12. Chiung-Ju Huang, 2013. "Corruption and Income Inequality in Asian Countries: Bootstrap Panel Granger Causality Test," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 161-170, December.
    13. Guerrero, Manuel Alejandro & Rodriguez-Oreggia, Eduardo, 2008. "On the individual decisions to commit corruption: A methodological complement," Journal of Economic Behavior & Organization, Elsevier, vol. 65(2), pages 357-372, February.
    14. Jac C Heckelman & Benjamin Powell, 2010. "Corruption and the Institutional Environment for Growth," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 52(3), pages 351-378, September.
    15. Onyekachi Chibueze Onuoha & Nonso John Okoye & Udemadu Frank Chika, 2021. "Exploring the Nexus between Corruption and all share index of Nigeria Capital Market," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(12), pages 707-715, December.
    16. Tomáš Otáhal, 2014. "Mises, Hayek and Corruption," Journal of Business Ethics, Springer, vol. 119(3), pages 399-404, February.
    17. Phan Thi Hang Nga & Pham Minh Tien, 2024. "The impact of public expenditure on economic growth in Vietnamese localities: Research in the context of the impact of Covid-19," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 14(1), pages 50-64.
    18. Wouter Ebben & Albert de Vaal, 2009. "Institutions and the Relation between Corruption and Economic Growth," DEGIT Conference Papers c014_014, DEGIT, Dynamics, Economic Growth, and International Trade.
    19. Boettke, Peter J. & Candela, Rosolino A. & Zhukov, Konstantin, 2023. "The morality of illicit markets: “Greasing the wheels” or “greasing the palm”?," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 411-422.
    20. E. Tsanana & X. Chapsa & C. Katrakilidis, 2016. "Is growth corrupted or bureaucratic? Panel evidence from the enlarged EU," Applied Economics, Taylor & Francis Journals, vol. 48(33), pages 3131-3147, July.

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