On the relation between corruption and market competition.

We construct a model where bureaucrats are corruptible, in the sense that they may accept bribes in order to mislead the authorities on the actual circumstances of firms that do not comply with a government regulation. We show that corruption increases the number of competing firms. We also show tha...

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Publicado en:Economic Inquiry Vol. 61; no. 1; pp. 99 - 122
Autores principales: Varvarigos, Dimitrios, Stathopoulou, Eleni
Formato: Artículo
Publicado: Wiley-Blackwell Jan2023
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: On the relation between corruption and market competition.
      aug:
        au:
          Varvarigos, Dimitrios
          Stathopoulou, Eleni
        affil:
          School of Business, Department of Economics, Finance and Accounting, University of Leicester, Leicester, UK
          Department of Economics, University of Sheffield, Sheffield, UK
      su:
        Corruption
        Bribery
        Government regulation
        Civil service
      sug:
        subj:
          Corruption
          Bribery
          Government regulation
          Civil service
          Other General Government Support
      keyword:
        competition
        corruption
        market entry
        competition
        corruption
        market entry
      ab: We construct a model where bureaucrats are corruptible, in the sense that they may accept bribes in order to mislead the authorities on the actual circumstances of firms that do not comply with a government regulation. We show that corruption increases the number of competing firms. We also show that increased competition (i) increases the likelihood that corruptible bureaucrats will actually transgress, and (ii) increases the bribe that corrupt bureaucrats will demand from each firm. These results are consistent with existing evidence showing a positive relation between competition and corruption, and that this causal relation operates in both directions.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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