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What leads to official corruption in China? A politico-economic analysis of economic opportunities and government corruption across China’s provinces

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  • Feng Yi
  • Zhijun Gao
  • Honglie Helen Zhang

Abstract

This paper investigates the relationship between economic opportunities and official corruption in China. We construct a cross-province sample of corrupted officials to analyse the effects on official corruption of mineral reserve, coal production, real estate and road construction, while including control variables such as population, GDP per capita, economic growth rate, private assets, provincial government capacity, fiscal transparency and distance of the province from Beijing. Spanning from December 2012 to November 2015, our sample contains 526 high-level government officials who worked in various provinces in China. We find through multivariate regression that economic opportunities represented by coal, minerals, real estate and road construction all have a positive and significant effect on official corruption in China at the levels of provincial department director or deputy director; meanwhile, capacity of political extraction, road construction and coal production are better indicators of official corruption at the level of governor or deputy governor.

Suggested Citation

  • Feng Yi & Zhijun Gao & Honglie Helen Zhang, 2018. "What leads to official corruption in China? A politico-economic analysis of economic opportunities and government corruption across China’s provinces," Post-Communist Economies, Taylor & Francis Journals, vol. 30(3), pages 273-289, May.
    • Handle: RePEc:taf:pocoec:v:30:y:2018:i:3:p:273-289
    DOI: 10.1080/14631377.2018.1442055
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    Cited by:

    1. Huishui Su & Yu Lu & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "Good Governance within Public Participation and National Audit for Reducing Corruption," Sustainability, MDPI, vol. 15(9), pages 1-17, April.
    2. Zhen Qi & Tristan Kenderdine & Tingfeng Tang & Qiren Liu, 2022. "China's anti‐corruption campaign and outward foreign direct investment by state‐owned enterprises," The World Economy, Wiley Blackwell, vol. 45(9), pages 2950-2976, September.

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