Corruption and Political Competition
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.
References listed on IDEAS
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- Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
- Manion, Melanie, 1996. "Corruption by Design: Bribery in Chinese Enterprise Licensing," Journal of Law, Economics and Organization, Oxford University Press, vol. 12(1), pages 167-195, April.
- Per G. Fredriksson, 1999. "The Political Economy of Trade Liberalization and Environmental Policy," Southern Economic Journal, Southern Economic Association, vol. 65(3), pages 513-535, January.
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