Corruption

Corruption

Author – Rohan Pedini

  • Corruption in customs

Chalendard, C. et al (2023). In the article presents a novel methodology for detecting corruption in customs, with a specific focus on Madagascar’s main port. By analysing data on tax evasion and the behaviour of key factors such as inspectors and brokers, the study highlights the significant impact of a select few individuals on tax revenue losses. The research contributes to the understanding of state effectiveness and tax collection by emphasizing the granularity of tax evasion and showcasing how the actions of specific actors can have macro-fiscal implications. Through collaborations with Madagascar Customs and GasyNet, the project successfully implemented anticorruption reforms, with former director general Eric Rabenja playing a crucial role in driving these initiatives.

 

  • Corruption and social trust: The role of corporate social responsibility

Namporn Thanetsunthorn (2021). State the intricate relationship between Corporate Social Responsibility (CSR), corruption, and social trust, emphasizing that while CSR can play a role in promoting social trust and mitigating the negative impact of corruption, it should not overshadow the necessity of robust anti-corruption measures and legislation. The study underscores the importance of understanding the specific pillars of CSR that contribute to building social trust and combating corruption, suggesting that further research should delve into these nuances. Additionally, the article provides practical implications for businesses and policymakers, urging them to leverage CSR initiatives to foster trust within society while also emphasizing the continued need for anti-corruption efforts and transparency.

 

  • Corruption and Firms

   Emanuele colonnelli; Mounu prem (2021). State the causal economic consequences of anti-corruption audits on local governments in Brazil. By utilizing rich micro-data, the study examines the impact of these audits on firm dynamics, particularly focusing on politically connected firms and public procurement activities. The research highlights that politically connected firms experience significant losses following anti-corruption measures, emphasizing the additional costs of corruption for government-dependent businesses. This study contributes to the literature on corruption, firm growth, and economic development by providing empirical evidence on the effects of anti-corruption initiatives on local economic activity and the relationships between corruption, political connections, and firm performance.

 

  • Pre-Retirement Corruption (China)

ZHAO, Y. P. et al (2021). Delves into the phenomenon of pre-retirement corruption among senior executives in Chinese state-owned enterprises, exploring the interplay between power utility, material desire utility, and corrupt behaviours. It highlights the government’s anti-corruption efforts and the role of public supervision in curbing illicit activities. The study examines how social influence and part-time jobs can impact executives’ sense of achievement and potential for corruption. While acknowledging limitations in data availability and the need for further research, the article underscores the importance of understanding and addressing pre-retirement corruption to uphold ethical standards in corporate governance.

 

  • Corruption and Misallocation in Government hiring.

Jeffrey Weaver (2021). States the implications of corruption and misallocation in government hiring practices within a health bureaucracy in developing countries. The study finds that despite the prevalence of bribes in the hiring process, the quality of hires remains comparable between those who pay bribes and those selected based on merit. However, service delivery outcomes are influenced by the correlation between wealth and quality among applicants, highlighting the complexities of corrupt practices in shaping the effectiveness of public sector recruitment.

 

  • Controlling Corruption in Development Aid: New Evidence from Contract-Level Data

Elizabeth Dávid-Barrett et al (2020). This article delves into the intricate dynamics of controlling corruption in development aid, particularly through the lens of donor regulations on procurement processes. By analysing the impact of World Bank procurement guidelines on corruption risks, the study highlights the complexities involved in mitigating corruption in aid spending. Through a comprehensive qualitative coding of procurement rules and in-depth comparisons over time, the research sheds light on the effectiveness of interventions aimed at curbing corruption. Furthermore, the study explores the interplay between donor oversight, state capacity, and corruption levels, providing valuable insights into the mechanisms through which corruption in development aid can be addressed.

  • Corruption and entrepreneurship in emerging market

Jiaqi Liu, et al (2019) article delves into the intricate dynamics between corruption and entrepreneurship in emerging markets, shedding light on how corruption can serve as a dual-edged sword in either fostering or impeding entrepreneurial endeavours. By examining the nonlinear relationship between corruption and entrepreneurship, the study uncovers a nuanced understanding of how different levels of corruption impact entrepreneurial activities. It highlights the role of corruption as an informal yet legitimate conduit in regions with deficient formal institutions, showcasing how it can create a “grey zone” for entrepreneurship. Moreover, the research underscores the importance of marketization levels in mitigating the adverse effects of high corruption on entrepreneurial initiatives, offering valuable insights for policymakers and stakeholders in fostering a conducive environment for entrepreneurship in emerging economies.

  • FIFA World Cup Sponsorship

Hundt, s.; Horsch, a (2019). Studies the impact of FIFA World Cup sponsorship contracts on stockholder wealth, focusing on the announcement of these contracts and their effects on shareholder returns. By analysing abnormal returns using event study methodology, the study finds that positive wealth effects are observed when there is a stable image of the sponsored entity, as predicted by the Capital Asset Pricing Model (CAPM). However, the significance of these effects is limited, indicating that the relationship between sponsorship announcements and stock prices is complex. The study emphasizes the importance of considering image scenarios and market models in understanding the wealth effects of FIFA sponsorships on stockholders.

  • Corruption and banking stability evidence from emerging economics

Toader, T. et al (2018). In this document discusses the relationship between corruption and banking stability. It highlights that a lower level of corruption has a positive impact on bank stability and that corruption significantly deteriorates the quality of bank loans. The document also suggests that banks in countries with higher levels of corruption could increase their stability by implementing rigorous internal corporate governance practices. The study analyses the relation between corruption and bank stability using a panel, bank-level analysis of 144 commercial banks from 17 countries in Central and Eastern Europe.

  • Corruption on productivity growth in Nigeria

OLUREMI OGUN (2018). It emphasizes the long-term effects of corruption on economic performance, particularly on investment, human capital, and productivity. The study highlights how corruption can divert resources from growth-enhancing projects to less productive endeavours, ultimately hindering economic development. The research methodology includes a model specification, data analysis, and empirical evidence to support the findings. The study concludes that corruption can negatively affect productivity growth, which in turn impacts overall economic growth in the long run.

  • Conclusion

 The provided articles offer a comprehensive exploration of corruption across various domains, shedding light on its multifaceted impacts and the complexities involved in addressing it. From examining corruption in customs and government hiring practices to its effects on banking stability, economic growth, and even entrepreneurial endeavours, these studies underscore the pervasive nature of corruption and its detrimental effects on society, governance, and economic development. Moreover, they highlight the importance of nuanced approaches to combating corruption, emphasizing the role of factors such as corporate social responsibility, anti-corruption audits, donor regulations, and marketization levels. While each article delves into different aspects of corruption, collectively, they contribute to a deeper understanding of the challenges posed by corruption and provide valuable insights for policymakers, businesses, and stakeholders striving to foster integrity, transparency, and accountability in both public and private sectors.

 

References

Chalendard, C. Prem, M. Corruption in Customs. Quarterly Journal of Economics, [s. l.], v. 138, n. 1, p. 575–636, 2023. DOI 10.1093/qje/qjac032. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=cd40fecb-9d7c-3023-bc52-42bbf3cd671e.

 

Colonnelli, E.; Prem, M. Corruption and Firms. Review of Economic Studies, [s. l.], v. 89, n. 2, p. 695–732, 2022. DOI 10.1093/restud/rdab040. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=a97ed21f-37e0-3686-a7ef-57945c8938ed

 

Elizabeth Dávid-Barrett, Mihály Fazekas, Olli Hellmann, Lili Márk, Ciara McCorley. Controlling Corruption in Development Aid: New Evidence from Contract-Level Data. Studies in Comparative International Development, [s. l.], v. 55, n. 4, p. 481–515, 2020. DOI 10.1007/s12116-020-09315-4. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=d1247cf5-3794-318f-b91b-1ab3a4b03dc0

 

HUNDT, S.; HORSCH, A. Sponsorship of the FIFA world cup, shareholder wealth, and the impact of corruption. Applied Economics, [s. l.], v. 51, n. 23, p. 2468–2491, 2019. DOI 10.1080/00036846.2018.1545082. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=682788e9-4e11-3117-a68a-ba52afcfe4cc

 

Jiaqi Liu, Mingzhi Hu, Huan Zhang, and Jon Carrick. Corruption and Entrepreneurship in Emerging Markets. Emerging Markets Finance & Trade, [s. l.], v. 55, n. 5, p. 1051–1068, 2019. DOI 10.1080/1540496X.2018.1531242. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=2c134098-4f95-3f4b-b783-ebcb3827af40

 

Namporn Thanetsunthorn. Corruption and social trust: The role of corporate social responsibility. Business Ethics, the Environment & Responsibility, [s. l.], v. 31, n. 1, p. 49–79, 2022. DOI 10.1111/beer.12380. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=50c48861-c391-372b-8a21-3b81201ec357

 

OGUN, O. Corruption and Growth: The Productivity Growth Nexus. Singapore Economic Review, [s. l.], v. 63, n. 5, p. 1227–1244, 2018. DOI 10.1142/S0217590816500016. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=491242a9-34d2-3af0-a2d4-0a2e4680f223

 

Tudorel Toader, Mihaela Onofrei, Ada-Iuliana Popescu, and Alin Marius Andrieș Corruption and Banking Stability: Evidence from Emerging Economies. Emerging Markets Finance & Trade, [s. l.], v. 54, n. 3, p. 591–617, 2018. DOI 10.1080/1540496X.2017.1411257. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=0c7be066-0f0e-3a1e-bd51-898dc413d8f0

 

WEAVER, J. Jobs for Sale: Corruption and Misallocation in Hiring. American Economic Review, [s. l.], v. 111, n. 10, p. 3093–3122, 2021. DOI 10.1257/aer.20201062. Disponível em:

https://research.ebsco.com/linkprocessor/plink?id=d26d296f-39a3-3132-9b33-29f25acfc561

 

ZHAO, Y. P, Xi Chen, Xiao-Hong Miao, Ying-Ran Tan, and Xiao-Yu Song. Never Forget Where You Started: To Prevent Pre-Retirement Corruption at China’s State-Owned Enterprises. Emerging Markets Finance & Trade, [s. l.], v. 57, n. 5, p. 1380–1398, 2021. DOI 10.1080/1540496X.2019.1643318. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=113a8874-b405-334a-8d37-6e5cdf4a7b61

 

 

 

 

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