Enhancing the Understanding of Corruption through System Dynamics Modelling

2 Abstract Over the past few decades, many studies of corruption have been carried out. These studies have mainly focussed on specific characteristics such as: economic issues, legal issues, social propositions, impact on national development, and in relation to economic policy. The rationale of this research is to build initial system dynamics models of corruption, so that these models can extend our understanding of corruption and act as an input to future policy making on corruption. System dynamics modelling allows researchers to discover 'hidden' dynamics. Moreover, system dynamics enables the analyst an increased level of flexibility, as system dynamics modelling uses both theoretical understanding, as well as empirical data collection. Indeed, as a result of this study, we can offer an explanation that uncovers the underlying factors that address the dynamics of corruption, social, economic, political, judicial and cultural factors in case of any developing country, which can be applied with some modifications for developed world. In this we try to determine problem of corruption in societies by incorporating very complex and different social, cultural and even religious aspects that were mostly untouched in system dynamics studies in past. Systems dynamics model of corruption developed in this study would be of use to policy makers and non-governmental organisations in understanding the complex nature of corruption.