Do Natural Resources Breed Corruption? Evidence from China
55 Pages Posted: 1 Aug 2011 Last revised: 23 Jul 2016
Date Written: 2015
Abstract
Rampant corruption is often observed in resource-rich countries, especially developing countries with weak political institutions. However, controversies exist regarding whether and how natural resources systematically breed corruption. With empirical evidence from China and through a subnational approach, I shed new light on the impacts of resources on corruption. By qualitative study of corruption cases, I identify the causal channels through which resources contribute to corruption, and using cross-regional and longitudinal statistical analysis on a unique dataset of corruption rates in China, I find that resource dependence significantly increases the propensity for corruption by state employees.
Keywords: China, corruption, curse of natural resources, mixed research method, subnational analysis
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