Acknowledgements 1
Statement of Original Authorship 1
Chapter One Introduction 1
1.1 Motivation of Thesis 1
1.2 Content of Thesis 3
1.2.1 Causes of Corruption 3
1.2.2 Consequences of Corruption 11
1.2.3 Methodology Issues 13
1.3 Structure of Thesis 16
Chapter Two Economic Determinants of Corruption：Chinese Evidence 18
2.1 Introduction 18
2.2 Determinants of Corruption 23
2.3 Empirical Analysis 29
2.3.1 Province-level Analysis 32
2.3.2 City-level Analysis 57
2.4 Conclusion 61
Chapter Three Political Interest and Corruption：Cross-country Evidence 71
3.1 Introduction 71
3.2 Political Interest 73
3.2.1 Theoretical Considerations 73
3.2.2 A Simple Model 76
3.3 Data 78
3.3.1 Dependent Variables 79
3.3.2 Measuring Political Interest 82
3.3.3 Further Independent Variables 83
3.4 Empirical Evidence 91
3.4.1 International Evidence 92
3.4.2 Within-country Evidence 114
3.5 Conclusion 116
Chapter Four Democracy and Corruption：Cross-country Evidence 119
4.1 Introduction 119
4.2 Theoretical Model 122
4.2.1 Model 124
4.2.2 Economic Equilibrium 126
4.2.3 Political Equilibrium 127
4.3 Empirical Evidence 131
4.3.1 Methodology and Data 131
4.3.2 Results 138
4.4 Conclusion 149
Appendix 150
Chapter Five Social Interaction and Corruption：Cross-country Evidence 152
5.1 Introduction 152
5.2 Theoretical Foundation 156
5.2.1 Background of the Model 158
5.2.2 A Simple Game 161
5.2.3 Dynamics 164
5.2.4 Conditional Corruption—Discussion and Extensions 165
5.3 Data and Methodological Approach 166
5.3.1 Micro Analysis 166
5.3.2 Macro Analysis 172
5.4 Results 173
5.4.1 Micro Level Using the EVS 173
5.4.2 Micro Level Using the WVS 190
5.4.3 Macro Level Using a Large Panel Data Set 197
5.5 Conclusion 203
Chapter Six Social Interaction and Corruption：Within-country Evidence 205
6.1 Introduction 205
6.2 Theoretical Model 208
6.3 Empirical Work 213
6.3.1 Data and Methodology 213
6.3.2 Results 220
6.4 Conclusion 224
Appendix 226
Chapter Seven Consequences of Corruption：Chinese Evidence 229
7.1 Introduction 229
7.2 Literature Review 234
7.3 Empirical Analysis 242
7.3.1 Data and Methodology 242
7.3.2 Corruption，Economic Growth and Income Distribution 247
7.3.3 Corruption and Foreign Direct Investment 259
7.3.4 Corruption and Public Expenditures 263
7.3.5 Corruption and the Environment 263
7.4 Conclusion 274
Appendix 277
Chapter Eight Conclusion 280
8.1 Summary of Findings 280
8.2 Policy Implications 283
8.3 Further Research 285
References 288