Corruption, Networking and Foreign Ownership: Recent Evidence from CEE Countries The present paper argues that the effect of corruption on foreign ownership is not necessarily linear and depends on the level of host corruption. So long as the expected returns from foreign investments exceed its expected costs, higher host corruption will be associated with higher foreign ownership. However, cos...

This essay explores the nature, causes, and consequences of corruption as it pertains to entire regimes. Grand corruption is modeled as a type of unproductive rent-seeking at the highest levels of government. The economic costs of corruption are assumed to increase in the decentralization (and relaxation) of its governance, increase convexly in the percentage extracted, and decreasing in the op...

The topic of corruption has recently attracted a great deal of attention, yet there is still a lack of micro level empirical evidence regarding the determinants of corruption. Furthermore, the present literature has not investigated the effects of political interest on corruption despite the interesting potential of this link. We address these deficiencies by analyzing a cross-section of indivi...

Corruption is defined in an occupational choice model as extra fees that must be paid by some entrepreneurs. Higher corruption leads to lower wages and total output. Income inequality follows a Kuznets relationship with both corruption and income. Two types of decentralization of the bribe-setters are distinguished, regional and bureaucratic. When mobility is imperfect, bureaucratic decentraliz...

— Does democracy suffer when corruption is high? Unfortunately, most studies of corruption have been descriptive, making it difficult to develop a well-supported answer to this question. There are, of course, quantitative corruption measures, but the most popularly used of them are measures of corruption perception aggregated at the national level, rather than corruption experience at the indiv...

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governments around the worlds especially in developing countries face with tremendous challenges.  high or moderate rate of corruption can be named as one of the most important of these challenges.  corruption and its inefficiency can deviate resources allocation to unproductive sectors of economy. trust in social networks or within the society has two antithetic effects in deployment of corrup...

The graduation from the ‘awareness-raising stage’ in anti-corruption to a concrete action-oriented phase too often has led to a plethora of legal drafting initiatives, changes in internal accountability mechanisms or administrative rules, or focus on enforcement issues on their own. This has been at the expense of prevention within a systemic or incentives-driven approach to institutional chang...

Corruption in public administration is a cause for continuing concern, particularly in the developing world. Although optimism regarding the ability of e-government to reduce or eliminate corruption is widespread, neutral impact assessment reports however continue to expose cases where corruption persists even after the introduction of e-government. Clearly, there is a need for strengthening re...

We study bureaucratic corruption in a model in which a constituency sets required levels for a given set of activities. Each activity is carried out by an external provider, and its realization is supervised by a bureaucrat. While bureaucrats are supposed to act on behalf of the constituency, they can decide to be corrupt and allow providers to deliver lower activity levels than contracted in e...