Abstract

http://ssrn.com/abstract=1756843
 
 

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Corruption and Social Interaction: Evidence from China


Bin Dong


Queensland University of Technology

Benno Torgler


Queensland University of Technology; CREMA; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

February 7, 2011

FEEM Working Paper No. 9.2011

Abstract:     
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.

Number of Pages in PDF File: 22

Keywords: Corruption, Social Interaction, China

JEL Classification: K42, D72, D64, O17, J24

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Date posted: February 8, 2011  

Suggested Citation

Dong, Bin and Torgler, Benno, Corruption and Social Interaction: Evidence from China (February 7, 2011). FEEM Working Paper No. 9.2011. Available at SSRN: http://ssrn.com/abstract=1756843 or http://dx.doi.org/10.2139/ssrn.1756843

Contact Information

Bin Dong (Contact Author)
Queensland University of Technology ( email )
GPO Box 2434
2 George Street
Brisbane, Queensland 4001
Australia
Benno Torgler
Queensland University of Technology ( email )
GPO Box 2434
2 George Street
Brisbane, Queensland 4001
Australia
CREMA
Gellertstrasse 18
Basel
Zurich, CH 8006
Switzerland
CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Poschinger Str. 5
Munich, DE-81679
Germany
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