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Do Natural Resources Breed Corruption? Evidence from China

Jing Vivian Zhan ()
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Jing Vivian Zhan: The Chinese University of Hong Kong

Environmental & Resource Economics, 2017, vol. 66, issue 2, 237-259

Abstract: Abstract Rampant corruption is often observed in resource-rich countries, especially developing countries with weak political institutions. However, controversies exist regarding whether and how natural resources systematically breed corruption. With empirical evidence from China and through a subnational approach, I shed new light on the impacts of resources on corruption. By qualitative study of corruption cases, I identify the causal channels through which resources contribute to corruption, and using cross-regional and longitudinal statistical analysis on a unique dataset of corruption rates in China, I find that resource dependence significantly increases the propensity for corruption by state employees.

Keywords: China; Corruption; Curse of natural resources; Mixed research method; Subnational analysis (search for similar items in EconPapers)
Date: 2017
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