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Corruption and Political Competition


  • Richard Damania

    (Adelaide University)

  • Erkan Yalcin

    (Yeditepe University)


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, EconWPA.
  • Handle: RePEc:wpa:wuwpmi:0510012
    Note: Type of Document - pdf; pages: 16

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    References listed on IDEAS

    1. 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.
    2. 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.
    3. repec:cup:apsrev:v:88:y:1994:i:01:p:33-47_09 is not listed on IDEAS
    4. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
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    Cited by:

    1. Nauro Campos & Francesco Giovannoni, 2007. "Lobbying, corruption and political influence," Public Choice, Springer, vol. 131(1), pages 1-21, April.
    2. Nauro F. Campos & Francesco Giovannoni, 2008. "Lobbying, Corruption and Other Banes," William Davidson Institute Working Papers Series wp930, William Davidson Institute at the University of Michigan.
    3. Baraldi A. Laura, 2008. "Effects of Electoral Rules, Political Competition and Corruption on the Size and Composition of Government Consumption Spending: An Italian Regional Analysis," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-37, July.

    More about this item


    Corruption; Lobbying; Political Competition;

    JEL classification:

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

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