Aspects of Bureaucratic Corruption

31 Pages Posted: 21 Sep 2010 Last revised: 24 Sep 2010

See all articles by Gautam Bose

Gautam Bose

UNSW Australia Business School, School of Economics

Date Written: September 20, 2010


This review attempts to identify treatments of corruption that draw upon characteristics of underdevelopment either as causes or as consequences. It focuses on three aspects of corruption in developing economies: red tape, rent-seeking, and the abundance of intermediaries. Red tape is presented as arising from differences in ability-to-pay and willingness-to-pay, which is a consequence of incomplete or absent markets in LDCs. Rent-seeking is viewed as a reason for inefficient allocation of resources. We emphasise that there is very little analysis of intermediation, but analysis is necessary to understand the structure of corruption markets.

Keywords: Bureaucratic Corruption, Red Tape, Middlemen, Rent Seeking

JEL Classification: D73, O12, O17, K42

Suggested Citation

Bose, Gautam, Aspects of Bureaucratic Corruption (September 20, 2010). UNSW Australian School of Business Research Paper No. 2010ECON14, Available at SSRN: or

Gautam Bose (Contact Author)

UNSW Australia Business School, School of Economics ( email )

High Street
Sydney, NSW 2052

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