Corruption and Social Interaction: Evidence from China

Arbeitspapier

We explore theoretically and empirically whether social interaction, including local and global interaction, influences the incidence of corruption. We first present an interaction-based model on corruption that predicts that the level of corruption is positively associated with social interaction. Then we empirically verify the theoretical prediction using within-country evidence at the province-level in China during 1998 to 2007. 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CREMA Working Paper ; No. 2010-22

Classification and Topics

• Classification: Wirtschaft ; Illegal Behavior and the Enforcement of Law ; Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior ; Altruism; Philanthropy; Intergenerational Transfers ; Formal and Informal Sectors; Shadow Economy; Institutional Arrangements ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Subject: Awards ; Signals ; Status ; Anonymity ; Globalization

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dong, Bin ; Torgler, Benno
• Event: Veröffentlichung
• (who): Center for Research in Economics, Management and the Arts (CREMA)
• (where): Basel
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/214480
• Last update: 10.03.2025, 11:41 AM CET