Corruption and social interaction: Evidence from China

Bin Dong and Benno Torgler

Journal of Policy Modeling, 2012, vol. 34, issue 6, 932-947

Abstract: To theoretically and empirically explore whether social interaction, either local and global, influences the incidence of corruption, we first present an interaction-based model which predicts that the level of corruption is positively associated with social interaction. We then empirically verify this theoretical prediction using within-country evidence at the province-level in China from 1998 to 2007. The panel data evidence clearly indicates that social interaction has a statistically significantly positive effect on the corruption rate in China. Our findings therefore underscore the relevance of social interaction in understanding corruption and point to important policy implications.

Keywords: Corruption; Social interaction; China (search for similar items in EconPapers)
JEL-codes: D64 D72 J24 K42 O17 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (12)

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Related works:
Working Paper: Corruption and Social Interaction: Evidence from China (2011)
Working Paper: Corruption and Social Interaction: Evidence from China (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:34:y:2012:i:6:p:932-947

DOI: 10.1016/j.jpolmod.2012.04.005

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