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Causes of corruption
Jönköping University, Jönköping International Business School, JIBS, Economics.
2009 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis consists of an introductory chapter and four essays. Although possible to read individually they all analyse the causes of corruption and hence complement each other.

The four essays collectively illustrate the complex nature of corruption. Often many interrelated factors work together in causing corruption. Hence, discovering how these factors, individually and together, cause corruption is vital in combating corruption.

The first essay helps to explain the path dependency of corruption. It shows that even if the legal system and enforcement level in a corrupt country or organisation is altered to become identical to that in a non corrupt, the level of corruption may not converge.

The second essay analyses how the decision making structure influences corruption. It is found that even though the profits of corruption may be monotonically related to changes in the organisational structure the incidence of corruption is not necessarily so.

The third essay looks on how corruption may spread between different organisations or countries as they interact with each other, with corrupt/non corrupt behaviour being more likely to be transmitted from successful to nonsuccessful entities than vice versa.

The fourth and final essay investigates how the freedom of information can impact on corruption. Looking on both regulatory and technical constraints on information flows, the conclusion is that relaxation of both constraints simultaneously is needed to combat corruption.

Place, publisher, year, edition, pages
Jönköping: Jönköping University, Jönköping International Business School , 2009. , 138 p.
Series
JIBS Dissertation Series, ISSN 1403-0470 ; 059
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-31974ISBN: 978-91-86345-02-0 (print)OAI: oai:DiVA.org:hj-31974DiVA: diva2:1034670
Available from: 2016-10-12 Created: 2016-10-12 Last updated: 2016-10-12Bibliographically approved
List of papers
1. Detection of corruption
Open this publication in new window or tab >>Detection of corruption
(English)Manuscript (preprint) (Other academic)
Abstract [en]

One often mentioned reason for why it seems very hard to change the amount of corruption in an economy is that those enforcing the laws might also be corrupt. It seems as if the general belief is that if this problem of law enforcement is solved, combating corruption will be as easy to do in heavily corrupt economies as in less corrupt economies. The paper investigates this often implicit assumption by testing two similar propositions; first whether the amount of people being corrupt in a country has any effect on the probabilityof getting caught given the same legal system and enforcement. Second,whether it is harder to influence the probability of detection in a country with a high level of corruption than in a country with a low level of corruption given the same legal system and enforcement level. This is done in two ways; first through an analysis of a simple case and then through numerical simulation of a more extensive case. It is shown that the number of people being corrupt has both a direct negative impact on the likelihood of getting detected as well as an indirect negative impact, since it lowers the positive marginal effect that an increase in the degree of enforcement has on the probability of detection.

National Category
Economics
Identifiers
urn:nbn:se:hj:diva-31969 (URN)
Available from: 2016-10-12 Created: 2016-10-12 Last updated: 2016-10-12Bibliographically approved
2. Power corrupts
Open this publication in new window or tab >>Power corrupts
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Deviating from the standard corruption literature the focus of this paper is on private corruption instead of bureaucratic corruption. We model an organisation's decision making process in two dimensions, complexity and concentration, and explore how these dimensions affect the existence and extent of corruption in an organisation. As expected, the decision making process affects corruption. However, changes of the decision making process do not necessarily have a monotonic influence on corruption.

Keyword
Corruption, organisations, private corruption, decision making system
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-31970 (URN)
Available from: 2016-10-12 Created: 2016-10-12 Last updated: 2016-10-12Bibliographically approved
3. Globalisation and corruption - Learning how to become less corrupt
Open this publication in new window or tab >>Globalisation and corruption - Learning how to become less corrupt
(English)Manuscript (preprint) (Other academic)
Abstract [en]

When countries do business with each other, be it through trade or investments, they expose themselves to foreign culture, behaviour and values (cultural traits). Previous research has shown that exposure to foreign cultures entails possible transmission of cultural traits. This paper demonstrates that when countries interact, domestic corruption may be influenced by the level of corruption in a foreign country. The empirical assessment of a panel of countries produces evidence that there indeed exists transmission of corruption between countries that interact. However, this transmission seems to be one directional going from rich to poor countries.

Keyword
Globalisation, Corruption, Cultural Transmission and Trade
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-31971 (URN)
Available from: 2016-10-12 Created: 2016-10-12 Last updated: 2016-10-12Bibliographically approved
4. The role of information in combating corruption
Open this publication in new window or tab >>The role of information in combating corruption
(English)Manuscript (preprint) (Other academic)
Abstract [en]

The dynamics and existence of corruption has been attributed to many different factors. This study specifically looks at the links between information and corruption. The paper asserts the importance of a free press in anti-corruption work. However, the novelty is to stress not only freedom of expression but also show why technological constraints on the circulation of information play an important role in anti-corruption work. The empirical result suggests that freedom of press only has a positive impact on corruption if the informational infrastructure is of a sufficiently good quality.

Keyword
Corruption, Information, Informational infrastructure, Press freedom
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-31972 (URN)
Available from: 2016-10-12 Created: 2016-10-12 Last updated: 2016-10-12Bibliographically approved

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