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Do Natural Resources Breed Corruption? Evidence from China

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  • Jing Vivian Zhan

    (The Chinese University of Hong Kong)

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.

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  • Jing Vivian Zhan, 2017. "Do Natural Resources Breed Corruption? Evidence from China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(2), pages 237-259, February.
    • Handle: RePEc:kap:enreec:v:66:y:2017:i:2:d:10.1007_s10640-015-9947-4
    DOI: 10.1007/s10640-015-9947-4
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    7. Tom Ogwang & Frank Vanclay & Arjan van den Assem, 2019. "Rent-Seeking Practices, Local Resource Curse, and Social Conflict in Uganda’s Emerging Oil Economy," Land, MDPI, vol. 8(4), pages 1-14, March.
    8. Hong, Ji Yeon & Yang, Wenhui, 2024. "How Natural Resources Affect Corruption in China," World Development, Elsevier, vol. 175(C).
    9. Yuanyuan Zhu & Xiaoqi Zhou & Yilin Gan & Jing Chen & Ruilin Yu, 2021. "Spatio-Temporal Differentiation and Driving Mechanism of the “Resource Curse” of the Cultivated Land in Main Agricultural Production Regions: A Case Study of Jianghan Plain, Central China," IJERPH, MDPI, vol. 18(3), pages 1-17, January.
    10. Jianxin Wu & Chunbo Ma, 2019. "The Convergence of China’s Marginal Abatement Cost of CO2: An Emission-Weighted Continuous State Space Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(4), pages 1099-1119, April.
    11. Chen, Fu & Tiwari, Sunil & Mohammed, Kamel Si & Huo, Weidong & Jamróz, Paweł, 2023. "Minerals resource rent responses to economic performance, greener energy, and environmental policy in China: Combination of ML and ANN outputs," Resources Policy, Elsevier, vol. 81(C).
    12. Waqar Wadho & Sadia Hussain, 2023. "Ethnic diversity, concentration of political power and the curse of natural resources," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 113-137, April.
    13. Veronika Linhartová & Martina Halásková, 2022. "Determinants of corruption: a panel data analysis of Visegrad countries," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(1), pages 51-79, March.
    14. Livia Nathan & Khoirul Aswar & Jumansyah ‎ & Sri Mulyani & Hardi ‎ & Azwir Nasir, 2022. "The Moderating Role of Natural Resources Between Fiscal Decentralization, Government Internal Audit, Law Enforcement and Corruption: Evidence from Indonesian Local Government," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 16(4), December.

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