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| Dong, Bing; Torgler, Benno. |
| 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. |
| Tipo: Working or Discussion Paper |
Palavras-chave: Corruption; Social Interaction; China; Political Economy; K420; D720; D640; O170; J240. |
| Ano: 2011 |
URL: http://purl.umn.edu/99686 |
