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Corruption and Political Competition

Author

Listed:
  • Richard Damania

    (Adelaide University)

  • Erkan Yalcin

    (Yeditepe University)

Abstract

There is a growing evidence that political corruption is often closely associated with the rent seeking activities of special interest groups. This paper examines the nature of the interaction between the lobbying activities of special interest groups and the incidence of political corruption and determines whether electoral competition can eliminate political corruption. We obtain some striking results. Greater electoral competition serves to lessen policy distortions. However, this in turn stimulates more intense lobbying which increases the scope of corrupt behavior. It is shown that electoral competition merely serves to alter the type of corruption that eventuates, but cannot eliminate it.

Suggested Citation

  • Richard Damania & Erkan Yalcin, 2005. "Corruption and Political Competition," Microeconomics 0510012, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpmi:0510012
    Note: Type of Document - pdf; pages: 16
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/mic/papers/0510/0510012.pdf
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    References listed on IDEAS

    as
    1. Manion, Melanie, 1996. "Corruption by Design: Bribery in Chinese Enterprise Licensing," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 12(1), pages 167-195, April.
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    3. Per G. Fredriksson, 1999. "The Political Economy of Trade Liberalization and Environmental Policy," Southern Economic Journal, John Wiley & Sons, vol. 65(3), pages 513-535, January.
    4. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
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    More about this item

    Keywords

    Corruption; Lobbying; Political Competition;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

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