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Anti-corruption campaign in China: An empirical investigation

Author

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  • Yang, Li
  • Milanović, Branko
  • Lin, Yaoqi

Abstract

Using official information published by Central Commission for Discipline Inspection (CCDI) of the CPC, we construct a database of officials who have been found guilty of corruption in China in the period 2012-21 with their personal characteristics and the amount of embezzled funds. We use it to investigate the correlates of corruption, estimate the effects of corruption on inequality, and find the expected increase in officials' income due to corruption and the gain in income distribution ranking. We find that the amount of corruption is positively associated with education, administrative (hierarchical) level of the official, and years of membership in the Communist Party. The sample of corrupt officials belongs to the upper income ranges of Chinese income distribution even without corruption. But corruption is a significant engine of upward mobility. While only one-half of the corrupt official would be in the top 5 percent of urban distribution without illegal incomes, practically all are in the top 5 percent when corrupt income is included.

Suggested Citation

  • Yang, Li & Milanović, Branko & Lin, Yaoqi, 2023. "Anti-corruption campaign in China: An empirical investigation," ZEW Discussion Papers 23-052, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:280990
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    References listed on IDEAS

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    1. Thomas Piketty & Li Yang & Gabriel Zucman, 2019. "Capital Accumulation, Private Property, and Rising Inequality in China, 1978–2015," American Economic Review, American Economic Association, vol. 109(7), pages 2469-2496, July.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Corruption; Income Inequality; Income Distribution; China; Rent Seeking;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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