Causes of corruption: Evidence from China

Bin Dong and Benno Torgler

China Economic Review, 2013, vol. 26, issue C, 152-169

Abstract: This study explores the causes of corruption in China using provincial panel data. Using both fixed effects and instrumental variables approaches, we find that provinces with greater anti-corruption efforts, higher educational attainment, historic influence from Anglo-American church universities, greater openness, more access to media, higher relative wages of government employees and a greater representation of women in the legislature are markedly less corrupt; whereas social heterogeneity, regulation and resources abundance breed substantial corruption. We also find that fiscal decentralization depresses corruption significantly. Finally, we identify a positive relationship between corruption and economic development in China, which is driven primarily by the transition to a market economy.

Keywords: Corruption; China; Government; Decentralization; Social heterogeneity (search for similar items in EconPapers)
JEL-codes: D73 H11 K42 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (68)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:26:y:2013:i:c:p:152-169

DOI: 10.1016/j.chieco.2012.09.005

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