IDEAS home Printed from https://ideas.repec.org/a/rnp/ecopol/ep1665.html
   My bibliography  Save this article

Estimation of Interrelation between Corruption and Competition

Author

Listed:
  • Golovanova, Svetlana V.

    () (National Research University Higher School of Economics)

  • Meleshkina, Anna I.

    () (Competition and Economic Regulation Research Center, Russian Presidential Academy of National Economy and Public Administration)

Abstract

The article is devoted to the quantitative assessment of interrelation between corruption and competition. The authors summarize the results of theoretical and empirical studies of the relationships, as well as conducting their own assessment based on international data. The results show that the relation in the two-way one. On the one hand, increasing intensity of competition leads corruption behavior to become more prevalent. On the other hand, corruption oppresses competition, thus causing additional negative effects on social welfare. The last effect, however, is pronounced for countries with low and moderate bureaucratic barriers. If the barriers are high, the effect becomes opposite: corruption may support competition. Thus, reduction and facilitation of bureaucratic procedures is an important measure of the state policy aimed to reduce corruption and promote competition. The study revealed no statistically significant impact of income per capita on intensity of competition and the level of corruption in the country. The hypothesis that increase in freedom of mass media restrains corruption is also rejected. Thus there is no reason to consider this tool as an effective measure of anti-corruption policies. An important factor influencing both variables, is the development of institutions (property rights protection, the efficiency of the judicial system and law enforcement agencies). This result is consistent with the results of theoretical and empirical studies of other authors and emphasizes the importance of developing institutions to achieve both the goal of reducing the level of corruption and the development of competition in the domestic market.

Suggested Citation

  • Golovanova, Svetlana V. & Meleshkina, Anna I., 2016. "Estimation of Interrelation between Corruption and Competition," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 100-121, December.
  • Handle: RePEc:rnp:ecopol:ep1665
    as

    Download full text from publisher

    File URL: ftp://w82.ranepa.ru/rnp/ecopol/ep1665.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Rafael Di Tella & Alberto Ades, 1999. "Rents, Competition, and Corruption," American Economic Review, American Economic Association, vol. 89(4), pages 982-993, September.
    2. Diaby, Aboubacar & Sylwester, Kevin, 2015. "Corruption and Market Competition: Evidence from Post-Communist Countries," World Development, Elsevier, vol. 66(C), pages 487-499.
    3. Peltzman, Sam, 1977. "The Gains and Losses from Industrial Concentration," Journal of Law and Economics, University of Chicago Press, vol. 20(2), pages 229-263, October.
    4. repec:bla:ecinqu:v:55:y:2017:i:1:p:137-159 is not listed on IDEAS
    5. Andrei Shleifer & Robert W. Vishny, 1993. "Corruption," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 599-617.
    6. Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September.
    7. Hallward-Driemeier, Mary, 2009. "Who survives ? the impact of corruption, competition and property rights across firms," Policy Research Working Paper Series 5084, The World Bank.
    8. Miller, William L., 2006. "Corruption and corruptibility," World Development, Elsevier, vol. 34(2), pages 371-380, February.
    9. Campos, Nauro F & Estrin, Saul & Proto, Eugenio, 2010. "Corruption as a Barrier to Entry: Theory and Evidence," CEPR Discussion Papers 8061, C.E.P.R. Discussion Papers.
    10. Duvanova, Dinissa, 2014. "Economic Regulations, Red Tape, and Bureaucratic Corruption in Post-Communist Economies," World Development, Elsevier, vol. 59(C), pages 298-312.
    11. L. Grigoriev & M. Ovchinnikov., 2008. "Corruption as Impediment for Country’s Modernization," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 2.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    competition policy; anti-corruption policy; institutions; bureaucratic barriers;

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnp:ecopol:ep1665. 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: (RANEPA maintainer). General contact details of provider: http://edirc.repec.org/data/aneeeru.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.