Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/214480 
Year of Publication: 
2010
Series/Report no.: 
CREMA Working Paper No. 2010-22
Publisher: 
Center for Research in Economics, Management and the Arts (CREMA), Basel
Abstract: 
We explore theoretically and empirically whether social interaction, including local and global interaction, influences the incidence of corruption. We first present an interaction-based model on corruption that predicts that the level of corruption is positively associated with social interaction. Then we empirically verify the theoretical prediction using within-country evidence at the province-level in China during 1998 to 2007. Panel data evidence clearly indicates that social interaction has a statistically significantly positive effect on the corruption rate in China. Our findings, therefore, underscore the relevance of social interaction in understanding corruption.
Subjects: 
Awards
Signals
Status
Anonymity
Globalization
JEL: 
K42
D72
D64
O17
J24
Document Type: 
Working Paper

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