Corruption manual for beginners - "Corruption techniques" in public procurement with examples from Hungary

Mihaly Fazekas (), Istvan Toth and Lawrence Peter King ()
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Mihaly Fazekas: University of Cambridge Faculty of Politics, Psychology, Sociology
Lawrence Peter King: Department of Sociology University of Cambridge

No 1339, CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: This paper develops 30 novel quantitative indicators of grand corruption that operationalize 20 distinct techniques of corruption in the context of public procurement. Each indicator rests on a thorough qualitative understanding of rent extraction from public contracts by corrupt networks as evidenced by academic literature, interviews and media content analysis. Feasibility and usefulness of the proposed indicators are demonstrated using micro-level public procurement data from Hungary in 2009-2012. While the prime value of this broad set of indicators is the possibility of combining them into a robust composite indicator of high-level corruption, the high degree of detail also reveals that many regulatory interventions have succeeded in changing the form of corruption, but not its overall incidence.

Keywords: public procurement; grand corruption; corruption technique; corruption indicators; micro data analysis (search for similar items in EconPapers)
JEL-codes: C81 D72 D73 H57 (search for similar items in EconPapers)
Pages: 82 pages
Date: 2013-11
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