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Border is better than distance? Contagious corruption in one belt one road economies

Gen-Fu Feng (), Bo Sui (), Min-Yi Dong (), Chun-xia Jiang () and Chun-Ping Chang ()
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Gen-Fu Feng: Xi’an Jiaotong University
Bo Sui: Xi’an Jiaotong University
Min-Yi Dong: Xi’an Jiaotong University
Chun-xia Jiang: Middlesex University Business School
Chun-Ping Chang: Xi’an Jiaotong University

Quality & Quantity: International Journal of Methodology, 2018, vol. 52, issue 4, 1909-1928

Abstract: Abstract Employing data of one belt one road (OBOR) countries from 2002 to 2013, this study compares the contagious corruption difference between geographic border and distance through the dynamic spatial econometric model. The empirical results not only confirm that corruption in OBOR countries exists under various contagious channels, but also indicate that border effects, serving as contagious channels for corruption, are better than distance effects. The empirical implication is that OBOR countries with a common border tend to possess contagious corruption due to the hosts’ demonstration effect and the convenience of transferring illegal assets. We advise that those OBOR countries should enhance the supervision of cash flow, look for any opportunity of kicking back a portion of the stolen money, and establish a specific task force on corruption.

Keywords: Contagious corruption; Border and distance effect; Spatial channels; One belt one road (search for similar items in EconPapers)
JEL-codes: C33 D73 P25 (search for similar items in EconPapers)
Date: 2018
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