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Economic Analysis of Corruption in Trasition Period

Author: ZhaoWei
Tutor: HouLiPing
School: Southwestern University of Finance and Economics
Course: Western Economics
Keywords: corruption economics analysis rent-seeking activity institutional change
CLC: D630.9
Type: Master's thesis
Year: 2007
Downloads: 1088
Quote: 2
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Abstract


As the intensity of the reform of economic system and the improvement of market in our country, the national economic strength is gradually reinforced, and the living standard of people is advanced day by day, however, every aspect of the reform dose not go well, as the advancement of the reform, various kind of problems gradually appear, herein corruption is one kind of many social problems. This article will be put forward starting from the corruption formed system, in view of economics, taking government offices as the economic man who seeks the maximization of benefit, applying the analyzing methods of theory of entrustment, theory of rent-seeking and new institutional economics, to analyze the formed mechanism of corruption, and put up with countermeasures to treat corruption from the front of system.The introduction in this article mainly introduces the caused background of problem, points out the main problem to be analyzed here, demonstrates the applied researching method and threads, and briefly reviews the achievements about corruption researched by experts both home and abroad from the aspect of economics. Chapter one analyzes the economic nature of corruption. In this part, it mainly lists that the international experts focusing on corruption problem provide definition and classification for corruption from the aspect of economics, introduces the basic content of theory of rent-seeking and the relationship between the rent-seeking action and the corruption action, finally, analyzes the relation between the corrupt actions and changes of system, and points out that the corruption is just the product of coexistence between the property in resources distribution field and the administrative power. in the second chapter, it firstly regulates the economic transformation as three periods, and respectively introduces the appearances and characteristics of corrupt phenomenon in theses three periods. Applying the method of subjective measure and objective measure, it analyzes the whole situation of corruption in our country. During the period of economic transformation, the corrupt actions in our county show as periodic wave and in the tendency of gradually increase. It proves that the corruption problem in our country is still severe, so the task of anti-corruption needs a long time and hard efforts. In third chapter, basing on the classification of corruption mentioned in former chapters, it analyzes the micro-mechanism of the formation of corrupt action. Herein, the conclusion is given: on the premise that the systematic factor is fixed, there existed relevant relationship between the corrupt action and some variables such as probability of investigation and disposal, degree of punishment and income level of officers. In fourth chapter, from the layer of macroeconomic system, it analyzes the causes of the formation of corruption in further degree during the transformation period in our country. Due to that the resources distribution mode of coexistence between administrative power and property has existed in a long time, and the administrative power is always above and beyond the property during the procession of resources distribution, which results in the appearance and spread of corrupt and rent-seeking actions. Secondly, in our country, the specific arrangement of administrative fields, for instance, the system of limitation, encourage, etc are not perfect, all of which cause the appearance of corruption in great deal during the transformation period in our country. In fifth chapter, on the basis of having analyzed the reasons to cause corruption in the aforementioned chapters, it puts up with to establish the relevant systematic measures for anti-corruption.Combining with the advantages in two aspects which are the studies of officer’s personal behavior in micro-layer and the political and economic systems in macro-layer, through applying economic method, this article will comprehensively analyze the causes of corruption and measures to treat it. Starting from the premise that government officer is rational economic man, this article will apply entrustment—agents theory to discuss the realistic root of corruption; apply rent-seeking theory and game theory to analyze the interactive process to produce corruption; and apply the system analyzing method to raise institutionalization strategy for anti-corruption.Because one’s own knowledge and level are limited, it is unavoidable to make some oversights in this paper. Adjure teachers and classmates to make a comment.

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