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Corruption and Policy: Back to the Roots

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  • Harry Broadman
  • Francesca Recanatini

Abstract

Corruption is now recognized to be a pervasive phenomenon that can seriously jeopardize the best-intentioned reform efforts. This paper presents an analytical framework for examining the role basic market institutions play in rent-seeking and illicit behavior. The empirical results suggest that high barriers to new business entry and soft budget constraints on incumbent firms are particularly important institutional factors engendering opportunities for corruption. The findings also support the notion that economic development and maturation of democratic processes both temper corruption, as does, to a lesser extent, openness to international trade.

Suggested Citation

  • Harry Broadman & Francesca Recanatini, 2002. "Corruption and Policy: Back to the Roots," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 5(1), pages 37-49.
    • Handle: RePEc:taf:jpolrf:v:5:y:2002:i:1:p:37-49
    DOI: 10.1080/13841280212381
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    References listed on IDEAS

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    1. Simon Johnson & Daniel Kaufmann & John McMillan & Christopher Woodruff, 2007. "Why Do Firms Hide? Bribes and Unofficial Activity after Communism," Palgrave Macmillan Books, in: Erik Berglöf & Gérard Roland (ed.), The Economics of Transition, chapter 10, pages 335-359, Palgrave Macmillan.
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    Citations

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    Cited by:

    1. Nafi Ghaniy & Fithra Faisal Hastiadi, 2017. "Political, Social and Economic Determinants of Corruption," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 144-149.
    2. Rajeev K. Goel, 2012. "Business regulation and taxation: effects on cross-country corruption," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 15(3), pages 223-242, September.
    3. Vartuhí Tonoyan & Robert Strohmeyer & Mohsin Habib & Manfred Perlitz, 2010. "Corruption and Entrepreneurship: How Formal and Informal Institutions Shape Small Firm Behavior in Transition and Mature Market Economies," Entrepreneurship Theory and Practice, , vol. 34(5), pages 803-832, September.
    4. Deininger, Klaus & Mpuga, Paul, 2005. "Does Greater Accountability Improve the Quality of Public Service Delivery? Evidence from Uganda," World Development, Elsevier, vol. 33(1), pages 171-191, January.
    5. Jayoti Das & Cassandra DiRienzo, 2009. "The Nonlinear Impact Of Globalization On Corruption," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 3(2), pages 33-46.
    6. Iwasaki, Ichiro & Suzuki, Taku, 2012. "The determinants of corruption in transition economies," Economics Letters, Elsevier, vol. 114(1), pages 54-60.
    7. Keefer, Philip, 2004. "A review of the political economy of governance : from property rights to voice," Policy Research Working Paper Series 3315, The World Bank.
    8. Łukasz Goczek, 2007. "Przyczyny korupcji i skuteczność strategii antykorupcyjnych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 33-48.
    9. Deininger, Klaus & Mpuga, Paul, 2004. "Does greater accountability improve the quality of delivery of public services? Evidence from Uganda," Policy Research Working Paper Series 3277, The World Bank.
    10. Eglantina HYSA, 2011. "Corruption and Human Development Correlation in Western Balkan Countries," EuroEconomica, Danubius University of Galati, issue 30, pages 148-157, November.
    11. Rosta, Miklós, 2015. "Introduction of soft budget constraint to analyze public administration reforms. Some evidence from the Hungarian public administration reform," MPRA Paper 68473, University Library of Munich, Germany.
    12. Ratbek, Ratbek, 2010. "Nonlinear effect of corruption, uncertainty, and growth," MPRA Paper 24834, University Library of Munich, Germany.

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