IDEAS home Printed from https://ideas.repec.org/p/hit/hituec/690_v2.html
   My bibliography  Save this paper

Social Confusion and Corruption: Investigating the Causes and Effects of a Breakdown of Ethics

Author

Listed:
  • Suzuki, Taku
  • Mizobata, Satoshi

Abstract

While studies of transitions to market economies have long focused on the issue of corruption, the perspectives from which their analyses have been based have diverged. Accordingly, this paper employs a systematic review through testing 14 hypotheses from the perspectives of political and economic causes, as well as culture and values, based on 558 works from the literature on the subject. Its findings make it clear that the liberalization and privatization of ownership both expand and contract corruption; the effects of culture and values also should not be overlooked, while mostly rejecting the so-called "greasing-the-wheels" hypothesis.

Suggested Citation

  • Suzuki, Taku & Mizobata, Satoshi, 2019. "Social Confusion and Corruption: Investigating the Causes and Effects of a Breakdown of Ethics," Discussion Paper Series 690_v2, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:hituec:690_v2
    Note: Revised version: September 2019 (First version: March 2019)
    as

    Download full text from publisher

    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/30531/DP690.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Johnson, Simon & Kaufmann, Daniel & McMillan, John & Woodruff, Christopher, 2000. "Why do firms hide? Bribes and unofficial activity after communism," Journal of Public Economics, Elsevier, vol. 76(3), pages 495-520, June.
    2. Thorvaldur Gylfason, 2000. "Resources, Agriculture, and Economic Growth in Economies in Transition," Kyklos, Wiley Blackwell, vol. 53(4), pages 337-361, November.
    3. Campos, Nauro & Saleh, Ahmad & Dimova, Ralitza, 2010. "Whither Corruption? A Quantitative Survey of the Literature on Corruption and Growth," CEPR Discussion Papers 8140, C.E.P.R. Discussion Papers.
    4. Jaroslav Belás & Yuriy Bilan & Valér Demjan & Juraj Sipko, 2015. "Entrepreneurship in SME Segment: Case Study from the Czech Republic and Slovakia," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(38), pages 308-308, February.
    5. Arnold, Christine, Eliyahu V. Sapir and Galina Zapryanova, 2012. "Trust in the institutions of the European Union: A cross-country examination," European Integration online Papers (EIoP), European Community Studies Association Austria (ECSA-A), vol. 16, February.
    6. Kilkon Ko & Seong-Gin Moon, 2014. "The relationship between religion and corruption: are the proposed causal links empirically valid?," International Review of Public Administration, Taylor & Francis Journals, vol. 19(1), pages 44-62, January.
    7. Tavares, Samia Costa, 2007. "Do rapid political and trade liberalizations increase corruption?," European Journal of Political Economy, Elsevier, vol. 23(4), pages 1053-1076, December.
    8. Qiangbing Chen, 2008. "Rent seeking and economic liberalization: why are China and Vietnam different from Eastern Europe?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 13(2), pages 168-179.
    9. Guriev, Sergei & Yakovlev, Evgeny & Zhuravskaya, Ekaterina, 2010. "Interest group politics in a federation," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 730-748, October.
    10. Grosfeld, Irena & Zhuravskaya, Ekaterina, 2015. "Cultural vs. economic legacies of empires: Evidence from the partition of Poland," Journal of Comparative Economics, Elsevier, vol. 43(1), pages 55-75.
    11. Safavian, Mehnaz S. & Sheldon, Ian M. & Graham, Douglas H. & Gonzalez-Vega, Claudio, 2001. "The Differential Impact Of Corruption On Microenterprises In Russia," 2001 Annual meeting, August 5-8, Chicago, IL 20495, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. repec:hal:pseose:halshs-01157572 is not listed on IDEAS
    13. Rose-Ackerman,Susan & Palifka,Bonnie J., 2016. "Corruption and Government," Cambridge Books, Cambridge University Press, number 9781107081208, September.
    14. Barr, Abigail & Serra, Danila, 2010. "Corruption and culture: An experimental analysis," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 862-869, December.
    15. Holtbrügge, Dirk & Berg, Nicola & Puck, Jonas F., 2007. "To bribe or to convince? Political stakeholders and political activities in German multinational corporations," International Business Review, Elsevier, vol. 16(1), pages 47-67, February.
    16. Cynthia M. Horne, 2014. "Lustration, Transitional Justice, and Social Trust in Post-Communist Countries. Repairing or Wresting the Ties that Bind?," Europe-Asia Studies, Taylor & Francis Journals, vol. 66(2), pages 225-254, February.
    17. Gulnaz Sharafutdinova & Jevgenijs Steinbuks, 2017. "Governors matter," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 25(3), pages 471-493, July.
    18. Valentina Dimitrova‐Grajzl, 2007. "The Great Divide Revisited: Ottoman and Habsburg Legacies on Transition," Kyklos, Wiley Blackwell, vol. 60(4), pages 539-558, November.
    19. Ivar Kolstad & Arne Wiig, 2011. "Does democracy reduce corruption?," CMI Working Papers 4, CMI (Chr. Michelsen Institute), Bergen, Norway.
    20. Giordano Christian, 2010. "Multiple Modernities in Bulgaria: Social Strategies of Capitalist Entrepreneurs in the Agrarian Sector," Eastern European Countryside, Sciendo, vol. 16(2010), pages 5-24, January.
    21. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
    22. Omer Gokcekus & Eva Muchova & Zuzana Brincikova, 2015. "Level and quality of openness and corruption in the ECA countries," Applied Economics Letters, Taylor & Francis Journals, vol. 22(16), pages 1340-1344, November.
    23. Vladimir Popov, 2012. "Russia: austerity and deficit reduction in historical and comparative perspective," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 36(1), pages 313-334.
    24. Nigel Harris & David Lockwood, 1997. "The war-making state and privatisation," Journal of Development Studies, Taylor & Francis Journals, vol. 33(5), pages 597-634.
    25. Makoto Yano, 2008. "Competitive fairness and the concept of a fair price under Delaware law on M&A," International Journal of Economic Theory, The International Society for Economic Theory, vol. 4(2), pages 175-190, June.
    26. Rose-Ackerman,Susan & Palifka,Bonnie J., 2016. "Corruption and Government," Cambridge Books, Cambridge University Press, number 9781107441095, September.
    27. Jetter, Michael & Agudelo, Alejandra Montoya & Hassan, Andrés Ramírez, 2015. "The Effect of Democracy on Corruption: Income is Key," World Development, Elsevier, vol. 74(C), pages 286-304.
    28. Anastassia Obydenkova & Alexander Libman, 2015. "Understanding the survival of post-Communist corruption in contemporary Russia: the influence of historical legacies," Post-Soviet Affairs, Taylor & Francis Journals, vol. 31(4), pages 304-338, July.
    29. Safavian, Mehnaz S. & Graham, Douglas H. & Gonzalez-Vega, Claudio, 2001. "Corruption and Microenterprises in Russia," World Development, Elsevier, vol. 29(7), pages 1215-1224, July.
    30. Braguinsky, Serguey, 1999. "Enforcement of Property Rights during the Russian Transition: Problems and Some Approaches to a New Liberal Solution," The Journal of Legal Studies, University of Chicago Press, vol. 28(2), pages 515-544, June.
    31. Andrei Shleifer & Daniel Treisman, 2005. "A Normal Country: Russia After Communism," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 151-174, Winter.
    32. Christev, Atanas & FitzRoy, Felix, 2002. "Employment and Wage Adjustment: Insider-Outsider Control in a Polish Privatization Panel Study," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 251-275, June.
    33. Ledyaeva, Svetlana & Karhunen, Päivi & Kosonen, Riitta, 2013. "Birds of a feather: Evidence on commonality of corruption and democracy in the origin and location of foreign investment in Russian regions," European Journal of Political Economy, Elsevier, vol. 32(C), pages 1-25.
    34. Anders Aslund & Simeon Djankov (ed.), 2014. "The Great Rebirth: Lessons from the Victory of Capitalism over Communism," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6970, April.
    35. Hung, Chi-Hsiou D. & Jiang, Yuxiang & Liu, Frank Hong & Tu, Hong & Wang, Senyu, 2017. "Bank political connections and performance in China," Journal of Financial Stability, Elsevier, vol. 32(C), pages 57-69.
    36. Iwasaki, Ichiro & Suzuki, Taku, 2012. "The determinants of corruption in transition economies," Economics Letters, Elsevier, vol. 114(1), pages 54-60.
    37. Duvanova, Dinissa, 2014. "Economic Regulations, Red Tape, and Bureaucratic Corruption in Post-Communist Economies," World Development, Elsevier, vol. 59(C), pages 298-312.
    38. Morris Bornstein, 1999. "Framework Issues in the Privatisation Strategies of the Czech Republic, Hungary and Poland," Post-Communist Economies, Taylor & Francis Journals, vol. 11(1), pages 47-77.
    39. Frye,Timothy, 2017. "Property Rights and Property Wrongs," Cambridge Books, Cambridge University Press, number 9781107156999, September.
    40. repec:bla:kyklos:v:53:y:2000:i:4:p:545-79 is not listed on IDEAS
    41. Frye,Timothy, 2017. "Property Rights and Property Wrongs," Cambridge Books, Cambridge University Press, number 9781316610107, September.
    42. Nye, J. S., 1967. "Corruption and Political Development: A Cost-Benefit Analysis," American Political Science Review, Cambridge University Press, vol. 61(2), pages 417-427, June.
    43. Keith Darden, 2008. "The Integrity of Corrupt States: Graft as an Informal State Institution," Politics & Society, , vol. 36(1), pages 35-59, March.
    44. Rajeev K. Goel & Jelena Budak & Edo Rajh, 2015. "Private sector bribery and effectiveness of anti-corruption policies," Applied Economics Letters, Taylor & Francis Journals, vol. 22(10), pages 759-766, July.
    45. Yuka Minagawa, 2013. "Inequalities in Healthy Life Expectancy in Eastern Europe," Population and Development Review, The Population Council, Inc., vol. 39(4), pages 649-671, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gans-Morse, Jordan & Borges, Mariana & Makarin, Alexey & Mannah-Blankson, Theresa & Nickow, Andre & Zhang, Dong, 2018. "Reducing bureaucratic corruption: Interdisciplinary perspectives on what works," World Development, Elsevier, vol. 105(C), pages 171-188.
    2. Zakharov, Nikita, 2019. "Does corruption hinder investment? Evidence from Russian regions," European Journal of Political Economy, Elsevier, vol. 56(C), pages 39-61.
    3. Hailin Chen & Friedrich Schneider & Qunli Sun, 2018. "Size, Determinants, and Consequences of Corruption in China's Provinces: The MIMIC Approach," CESifo Working Paper Series 7175, CESifo.
    4. Lv, Zhike, 2017. "Intelligence and corruption: An empirical investigation in a non-linear framework," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 69(C), pages 83-91.
    5. Djankov, Simeon, 2016. "The divergent postcommunist paths to democracy and economic freedom," LSE Research Online Documents on Economics 118966, London School of Economics and Political Science, LSE Library.
    6. Krisztina Kis-Katos & Günther G. Schulze, 2013. "Corruption in Southeast Asia: a survey of recent research," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(1), pages 79-109, May.
    7. Jamie M. Sommer, 2020. "Corruption and Health expenditure: A Cross-National Analysis on Infant and Child Mortality," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(3), pages 690-717, July.
    8. Jetter, Michael & Parmeter, Christopher F., 2018. "Sorting through global corruption determinants: Institutions and education matter – Not culture," World Development, Elsevier, vol. 109(C), pages 279-294.
    9. Larissa Batrancea & Anca Nichita & Ioan Batrancea & Lucian Gaban, 2018. "The Strenght of the Relationship Between Shadow Economy and Corruption: Evidence from a Worldwide Country-Sample," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 1119-1143, August.
    10. Andris Zimelis, 2020. "Corruption research: A need for an integrated approach," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 23(3), pages 288-306, September.
    11. Diaby, Aboubacar & Sylwester, Kevin, 2015. "Corruption and Market Competition: Evidence from Post-Communist Countries," World Development, Elsevier, vol. 66(C), pages 487-499.
    12. Ichiro IWASAKI & Satoshi MIZOBATA, 2018. "Post-Privatization Ownership And Firm Performance: A Large Meta-Analysis Of The Transition Literature," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(2), pages 263-322, June.
    13. repec:hhs:bofitp:2009_005 is not listed on IDEAS
    14. repec:zbw:bofitp:2011_031 is not listed on IDEAS
    15. Sebastian I. Burduja & Rodica Milena Zaharia, 2019. "Romanian Business Leaders’ Perceptions of Business-to-Business Corruption: Leading More Responsible Businesses?," Sustainability, MDPI, vol. 11(20), pages 1-27, October.
    16. Goel, Rajeev K. & Korhonen, Iikka, 2011. "Exports and cross-national corruption: A disaggregated examination," Economic Systems, Elsevier, vol. 35(1), pages 109-124, March.
    17. Lindsey Carson & Mariana Mota Prado, 2014. "Mapping Corruption and its Institutional Determinants in Brazil," Global Development Institute Working Paper Series iriba_wp08, GDI, The University of Manchester.
    18. Michael Jetter & Christopher F. Parmeter, 2016. "Uncovering the determinants of corruption," Working Papers 2016-02, University of Miami, Department of Economics.
    19. Michael A. Sartor & Paul W. Beamish, 2020. "Private Sector Corruption, Public Sector Corruption and the Organizational Structure of Foreign Subsidiaries," Journal of Business Ethics, Springer, vol. 167(4), pages 725-744, December.
    20. Mohammed Lazreg & Kamel Si Mohammed, 2019. "Corruption and Democracy in Middle East and North Africa Countries: Dynamic Generalized Method of Moments," International Journal of Economics and Financial Issues, Econjournals, vol. 9(1), pages 60-65.
    21. Ioannis Dokas & Georgios Oikonomou & Minas Panagiotidis & Eleftherios Spyromitros, 2023. "Macroeconomic and Uncertainty Shocks’ Effects on Energy Prices: A Comprehensive Literature Review," Energies, MDPI, vol. 16(3), pages 1-35, February.

    More about this item

    Keywords

    corruption; systems; economic growth; democracy; tradition; systematic review;
    All these keywords.

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hit:hituec:690_v2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hiromichi Miyake (email available below). General contact details of provider: https://edirc.repec.org/data/iehitjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.