Why some countries thrive despite corruption: The role of trust in the corruption-efficiency relationship

Review of International Political Economy

Volumn 17, Issue 1, 2010, Pages 129-154

  Li, Shaomin ^a   Wu, Jun ^a  

^a OLD DOMINION UNIVERSITY   (United States)

Author keywords

Corruption; Economic growth; Relation based; Social network; Trust

Indexed keywords

EID: 77649092458     PISSN: 09692290     EISSN: 14664526     Source Type: Journal    
DOI: 10.1080/09692290802577446     Document Type: Article

References (60)

1. Anderson, J. and Narus J. A. (1990) 'A Model of Distributor Firm and Manufacturer Firm Working Partnerships', Journal of Marketing, 54: 42-58.
2. Barro, R. (1997) Determinants of Economic Growth: A Cross-country Empirical Study, Cambridge, MA: The MIT Press.
3. Barro, R. J. and Lee, J. (2000) 'International Data on Educational Attainment Updates and Implications', NBER Working Paper No 7911, National Bureau of Economic Research, Cambridge, MA.
4. Becker, G. (1968) 'Crime and Punishment: An Economic Approach', Journal of Political Economy, 76(2): 169-217.
5. Bhargava, V. and Bolongaita, E. (2004) Challenging Corruption in Asia: Case Studies and Framework for Action, Washington, DC: The World Bank.
6. Bjornskov, C. (2006) 'Determinants of Generalized Trust: A Cross-country Comparison', Public Choice, 130: 1-21.
7. Child, J. (2001) 'Trust The Fundamental Bond in Global Collaboration', Organizational Dynamics, 29(4): 274-88.
8. Chinaaffairs.org. (2007) 'Corruption of the Chinese Communist Party', http:// www.chinaaffairs.org/gb/forum-step1.asp?categoryID=55 23 March 2001- 24 May 2007 (accessed 25 May 2007).
9. Choi, J. P. and Thum, M. (1998) 'Market Structure and the Timing of Technology Adoption with Network Externalities', European Economic Review, 42(2): 225-44.
10. Dwyer, F. R. and LaGace, R. R. (1986) 'On the Nature and Role of Buyer-Seller Trust', in T. Shimpet al. (eds) MA Summer Educators Conference Proceedings, Chicago: American Marketing Association, pp. 40-5.
11. Freedom House (1972-2006) Freedom in the World Country Ratings, Washington, DC: Freedom House.
12. Fukuyama, F. (1995) Trust, New York: Free Press.
13. Gambetta, D. (1993) The Sicilian Mafia: The Business of Private Protection, Cambridge: Harvard University Press.
14. Gutmann, E. (2004) Losing the New China: A Story of American Commerce,Desire and Betrayal, San Francisco: Encounter Books.
15. Hu, S. (2006) 'Chinese Corruption Innovation', Radio Free Asia, 24 November (in Chinese).
16. Inglehart, R. (1994-2005) World Values Survey, Ann Arbor: Institute for Social Research, University of Michigan.
17. Jain, A. K. (2001) 'Corruption: A Review', Journal of Economic Surveys, 15(1): 71-121.
18. Kaufmann, D. and Wei, S. J. (2000) 'Does "Grease Money" Speed Up the Wheels of Commerce?', NEBR Working Paper No 7093, National Bureau of Economic Research, Cambridge, MA.
19. Kennedy, P. (2003) A Guide to Econometrics, Cambridge, MA: The MIT Press.
20. Knack, S. and Keefer, P. (1997) 'Does Social Capital have an Economic Payoff? A Cross-country Investigation', The Quarterly Journal of Economics, 112(4): 1251-88.
21. Kreps, D., Milgrom, P., Roberts, J. and Wilson, R. (1982) 'Rational Cooperation in the Finitely Repreated Prisoner's Dilemma', Journal of Economic Theory, 27(2): 245-52.
22. La Porta, R., Lopez-de-Silanes, F. and Shleifer, A. (2002) 'Government Ownership of Banks', The Journal of Finance, 57(1): 265-302.
23. La Porta, R., Lopez-de-Silanes, F., Shleifer, A. and Vishny, R. M. (1997) 'Trust in Large Organizations', The American Economic Review, 87(2): 333-8.
24. Lambsdorff, G., (2002a)'What Nurtures Corrupt Deals?On the Role of Confidence and Transaction Costs', in D. della Porta and S. Rose-Ackerman (eds) Corrupt Exchanges, Baden Baden, Germany: Nomos Verlag.
25. Lambsdorff, J. G. (2002b) 'How Confidence Facilitates Illegal Transactions', American Journal of Economics and Sociology, 61(4): 829-54.
26. Leff, N. H. (1964) 'Economic Development through Bureaucratic Corruption', The American Behavioral Scientist, 8(3): 8-14.
27. Li, S. and Filer, L. (2007) 'The Effects of the Governance Environment on the Choice of Investment Mode and the Strategic Implications', Journal of World Business, 42(1): 80-98.
28. Li, S., Park, S. H., and Li, S. (2004) 'The Great Leap Forward: The Transition From Relation-BasedGovernancetoRule-BasedGovernance',Organizationa lDynamics, 33(1): 63-78.
29. Lui, F. T. (1985) 'An Equilibrium Queuing Model of Bribery', Journal of Political Economy, 93(4): 760-81.
30. Moorman, C., Deshpande, R. and Zaltman, G. (1993) 'Factors Affecting Trust in Market Research Relationships', Journal of Marketing, 57: 81-101.
31. Morgan, R. M. and Hunt, S. D. (1994) 'The Commitment-Trust Theory of Relationship Marketing', Journal of Marketing, 58(3): 20-39.
32. Murphy, K. M., Shleifer, A. and Vishny, R. W. (1991) 'The Allocation of Talent: Implications for Growth', The Quarterly Journal of Economics, 106(2): 503-30.
33. Murphy, K. M., Shleifer, A. and Vishny, R. W. (1993) 'Why is Rent-Seeking so Costly to Growth?' The American Economic Review, 83(2): 409-14.
34. Nwabuzor, A. (2005) 'Corruption and Development: New Initiatives in Economic Openness and Strengthened Rule of Law', Journal of Business Ethics, 59: 121-38.
35. Park, S. H. and Luo, Y. (2001) 'Guanxi and Organizational Dynamics: Organizational Networking in Chinese Firms', Strategic Management Journal, 22(5): 455-77.
36. Przeworski, A., Alvarez, M. E., Cheibub, J. A., and Limongi, F. (2000) Democracy and Development: Political Institutions and Well-being in the World,1950-1990, Cambridge: Cambridge University Press.
37. Putnam, R. (1993) Making Democracy Work: Civic Traditions in Modern Italy, Princeton, NJ: Princeton University Press.
38. Putnam, R. (2000) Bowling Alone: The Collapse and Revival of American Community, New York: Simon & Schuster.
39. Rodriguez, P., Siegel, D. S., Hillman, A., and Eden, L. (2006) 'Three Lenses on the Multinational Enterprise: Politics, Corruption, and Corporate Social Responsibility', Journal of International Business Studies, 37(6): 733-46.
40. Rose-Ackerman, S. (1977) 'On the Distribution of Public Program Benefits between Landlords and Tenants', Journal of Environmental Economics and Management, 4(2): 167.
41. Rotter,J. B. (1967) 'A New Scale for the Measurement of Interpersonal Trust',Journal of Personality, 35(4): 651-65.
42. Shleifer, A. and Vishny, R.(1993) 'Corruption',Quarterly Journal of Economics, 108(3): 599-617.
43. Solow, R. M. (1956) 'A Contribution to the Theory of Economic Growth', Quarterly Journal of Economics, 70: 65-94.
44. Sun, Y. (2004) Corruption and Market in Contemporary China, Ithaca, NY: Cornell University Press.
45. Svensson, J. (2003) 'Why Conditional Aid Does Not Work and What Can Be Done about it?' Journal of Development Economics, 70(2): 381-402.
46. Svensson, J. (2005) 'Eight Questions about Corruption', Journal of Economic Perspectives, 19(3): 19-42.
47. Taihang Luntan (2007) 'Youquanbushi guoqizuofei', http://www.thlt.cn/bbs/ archiver/?tid-2694.html, 20 January (accessed 25 May 2007).
48. Tang, W. (2005) Public Opinion and Political Change in China, Stanford, CA: Stanford University Press
49. Transparency International (1996) Corruption Perception Index, Berlin: Transparency International.
50. Transparency International (2002) Corruption Perception Index, Berlin: Transparency International.
51. Transparency International (2007) Corruption Perception Index, Berlin: Transparency International.
52. Uslaner, E. M. (2002) The Moral Foundations of Trust, New York: Cambridge University Press.
53. Uslaner, E. M. (2004) 'Trust and Corruption', in J. G. Lambsdorf, M. Taube and M. Schramm (eds) Corruption and the New Institutional Economics, London: Routledge, pp. 76-92.
54. Wedeman, A. (1997) 'Looters, Rent-Scrapers, and Dividend-Collectors: Corruption and Growth in Zaire, South Korea, and the Philippines', 31(4): 457-78.
55. Wedeman, A. (2002) 'Development and Corruption: The East Asian Paradox', in E.D. Gomez (eds) Political Business in East Asia, London: Routledge.
56. Wooldridge, J. (2003) Introductory Econometrics: A Modern Approach, Mason, OH: South-Western College.
57. World Bank (2006-2007) World Development Indicators, Washington, DC: World Bank.
58. World Bank (2007) World Development Indicators, Washington, DC: World Bank.
59. Xin, K. R. and Pearce, J. L. (1996) 'Guanxi: Connections as Substitutes for Formal Institutional Support', Academy of Management Journal, 39(6): 1641-58.
60. Yang, C. C. (1995) 'Endogenous Tariff Formation under Representative Democracy: A Probabilistic Voting Model', The American Economic Review, 85(4): 956-63.