Corruption and its global impact Flashcards
(17 cards)
How does Shleifer and Vishny (1993) define corruption?
The sale by government officials of government property for personal gain.
How does the World Bank (1997) define corruption?
The abuse of public office for private gains.
What is the general view of corruption?
A distortion in decision-making that benefits some and harms others.
What is petty corruption?
Small bribes to low-level bureaucrats for minor favours.
What is grand corruption?
Large-scale corruption involving high-level officials and significant sums.
What are bottom-up and top-down corruption?
Bottom-up: bribes collected by low-level officials and shared upward; Top-down: initiated by high-level officials and shared downward.
How does government size affect corruption?
Large governments can increase or reduce corruption depending on enforcement capacity.
How do civil service salaries relate to corruption?
Higher wages may reduce corruption, but evidence is mixed.
What institutional factors reduce corruption?
High-quality institutions, economic openness, press freedom, and judiciary independence.
What social factors are linked to lower corruption?
Higher female labour force participation.
What does the rational choice theory suggest about corruption?
Individuals act in self-interest, often at the expense of collective good.
What is the collective action model?
Corruption persists due to social norms that tolerate or encourage it.
What is the principal-agent model?
Corruption arises when agents (officials) act in their own interest rather than the principal’s (public).
How does corruption affect GDP?
reduces GDP, though causality may be bidirectional.
How does corruption affect inequality?
It increases inequality.
How does corruption affect investment and trade?
It reduces total investment, FDI, and foreign trade due to higher transaction costs.
What are two key tools for measuring corruption?
Transparency International’s Global Corruption Barometer and Bribe Payers Index.
