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Local connectivity and corruption: Micro evidence from China

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  • Liu, Qijun

Abstract

A sizable literature has shown that personal connections play an important role in corruption. Among such corruption activities, the most pervasive is corruption by native government workers through local networks. Yet, little is known about the effect of local connectivity on corruption. This paper studies how local connectivity affects corruption. The analysis is based on individual-level corruption practices from China (N = 57,270). Corruption is measured by rents extracted from a population. The results show that local connectivity reduces corruption: government officials serving at hometown are less corrupt in extracting fewer rents from the local population than government officials from outside the region. The effect was amplified by local network intensity but offset by ethnic diversity in a region. The findings reveal nuances for policy arrangements for control of corruption contingent on whether government officials are from the local population or from outside.

Suggested Citation

  • Liu, Qijun, 2025. "Local connectivity and corruption: Micro evidence from China," European Journal of Political Economy, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:poleco:v:86:y:2025:i:c:s0176268025000126
    DOI: 10.1016/j.ejpoleco.2025.102652
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    More about this item

    Keywords

    Local connectivity; Rent seeking; Corruption; China;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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