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Who gets caught for corruption when corruption is pervasive? Evidence from China’s anti-bribery blacklist

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  • Liming Zhou
  • Zhangfeng Jin
  • Zheng Wang

Abstract

This article empirically investigates why in a corruption-pervasive country only a minority of the firms get caught for bribery while the majority get away with it. By matching manufacturing firms to a blacklist of bribers in the healthcare sector of a province in China, we show that the government-led blacklisting is selective: while economically more visible firms are slightly more likely to be blacklisted, state-controlled firms are the most protected compared to their private and foreign competitors. Our finding points to the fact that a government can use regulations to impose its preferences when the rule of law is weak and the rule of government is strong.

Suggested Citation

  • Liming Zhou & Zhangfeng Jin & Zheng Wang, 2017. "Who gets caught for corruption when corruption is pervasive? Evidence from China’s anti-bribery blacklist," Applied Economics Letters, Taylor & Francis Journals, vol. 24(4), pages 258-263, February.
    • Handle: RePEc:taf:apeclt:v:24:y:2017:i:4:p:258-263
    DOI: 10.1080/13504851.2016.1181826
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    References listed on IDEAS

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