TY - JOUR

T1 - Market and network corruption

T2 - Theory and evidence

AU - Kravtsova, Maria

AU - Oshchepkov, Aleksey

N1 - The article was prepared within the framework of the HSE University Basic Research Program. Publisher Copyright: © 2023, The Author(s), under exclusive licence to Springer Nature B.V.

PY - 2024/1

Y1 - 2024/1

N2 - In this paper, we study a division between market corruption—impersonal bribery—and network corruption that operates through social connections. We provide a thorough theoretical discussion of this division, compare it with other categorizations of corruption, and also demonstrate differences between market and network corruption existing in practice. Using data from the World Economic Forum in the period from 2007 to 2016 we measure market and network corruption across about 150 countries all over the globe and show that network corruption is more related to countries’ cultural backgrounds and more harmful to investments than market corruption. Overall, our paper argues that the market-network dimension, unfairly abandoned in the literature, may be useful for better understanding of such a complex phenomenon as corruption.

AB - In this paper, we study a division between market corruption—impersonal bribery—and network corruption that operates through social connections. We provide a thorough theoretical discussion of this division, compare it with other categorizations of corruption, and also demonstrate differences between market and network corruption existing in practice. Using data from the World Economic Forum in the period from 2007 to 2016 we measure market and network corruption across about 150 countries all over the globe and show that network corruption is more related to countries’ cultural backgrounds and more harmful to investments than market corruption. Overall, our paper argues that the market-network dimension, unfairly abandoned in the literature, may be useful for better understanding of such a complex phenomenon as corruption.

KW - Blat

KW - Bribery

KW - D73

KW - L26

KW - Market corruption

KW - Network corruption

KW - Parochial corruption

KW - Z13

KW - Politics

UR - http://www.scopus.com/inward/record.url?scp=85164478969&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/f89be53c-4fd7-38cc-93ea-760c1be5a54a/

U2 - 10.1007/s10611-023-10103-z

DO - 10.1007/s10611-023-10103-z

M3 - Journal articles

AN - SCOPUS:85164478969

VL - 81

SP - 27

EP - 51

JO - Crime, Law and Social Change

JF - Crime, Law and Social Change

SN - 0925-4994

IS - 1

ER -