Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/53277
Authors: 
Dong, Bin
Torgler, Benno
Year of Publication: 
2011
Series/Report no.: 
Nota di lavoro // Fondazione Eni Enrico Mattei: Global challenges 09.2011
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: 
Corruption
Social Interaction
China
JEL: 
K42
D72
D64
O17
J24
Document Type: 
Working Paper

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