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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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