In this chapter I present some preliminary results on the nature of corruption and countervailing action in Pakistan, drawing on data extracted from newspapers. Once it is recognized that corruption creates losers as well as winners, some dramatic implications for the theory of corruption emerge. This leads to an analysis of the countervailing action taken by losers to offset their losses from ...

Corruption is not a new phenomenon; we are living with it since the birth of government’s institutions. Corruption has two dimensions; public sector corruption and private sector corruption. The public sector corruption means, “misuse of public office for private benefits”. For cross country analysis, public sector corruption is mainly focused. In this study, we have analyzed the 41 developing ...

We consider the problem of corruption detection on networks. In this model each vertex of a directed graph can be either truthful or corrupt. Each vertex reports about the types (truthful or corrupt) of all his out-neighbors. If he is truthful, he reports the truth, whereas if he is corrupt he reports adversarially. This model, considered in [15] motivated by the desire to identify the faulty c...

........................................................................................................................................................ iii Acknowledgments ........................................................................................................................................ iii Introduction .............................................................

Corruption, Networking and Foreign Ownership: Recent Evidence from CEE Countries The present paper argues that the effect of corruption on foreign ownership is not necessarily linear and depends on the level of host corruption. So long as the expected returns from foreign investments exceed its expected costs, higher host corruption will be associated with higher foreign ownership. However, cos...

This study furthers our understanding of how corruption affects the decision-making process of allocating foreign direct investment (FDI). Drawing on the responses of 28 managers in charge of establishing operations in a highly corrupt host country, we argue that those firms based in home countries with low levels of corruption are more proactive in preparing to face corruption abroad than thos...

a r t i c l e i n f o This paper analyses how the quality of governance, the size of public spending, and economic development affect the relationship between bureaucratic corruption and economic growth. The analysis shows that the interaction between corruption and governance shapes the efficiency of public spending, which in turn, determines the growth effects of corruption. Specifically, cor...

This paper considers the role of corruption in impelling capital flight. Identifying corruption as one dimension of poor governance, the empirical analysis explores direct linkages between corruption and capital flight in a broad sample of countries. The novelty of this investigation is that it is based on a portfolio choice model of asset allocation that explicitly recognizes corruption as con...

The paper studies the influence of Gordon Tullock (1967) and the rent-seeking literature more generally on the study of corruption. The theoretical corruption literature with its emphasis on principal-agent relationships within government and rent creation by corruption politicians has largely, but not entirely, overlooked that contestable rents encourage unproductive use of real resources in s...

We consider corruption behavior in a three-players game : Principal, Agent, Corrupter. When the Principal chooses a fair wage, the Agent faces conflicting interests to reciprocate. This delegation effect is expected to lower the level of corruption as compared to what arises in two-players settings. We set up two experiments varying in the exogeneity of the delegation relationship. The experime...