Corruption, Business, and Economic Development

By Rady, Tamer | Journal of Organizational Culture, Communications and Conflict, January 1, 2016 | Go to article overview

Corruption, Business, and Economic Development


Rady, Tamer, Journal of Organizational Culture, Communications and Conflict


(ProQuest: ... denotes formulae omitted.)

INTRODUCTION

Corruption has been at the center of extensive research since the turn of the 21st century. Early corruption research can be traced back to the late 60s and before. A simple definition of corruption involves individuals who are public officials that are abusing their public office for private gain. However, some views extend that definition. Kaufmann (2015) sees corruption from a larger perspective "involving a network of politicians, organizations, companies, and private individuals colluding to benefit from access to power, public resources, and policy-making at the expense of the public good" The later form can affect the rule of law and regulations, and hence is referred to sometimes using the term State capture. Such forms of illegal activities may require widening the definition of the term corruption itself. Svensson (2005) regards corruption as a result and an indicator of the power of the political institutions of a country in addition to its economic standing, dominant culture and rule of law status and asserts that the definition of corruption itself is not definite.

Several indexes are used to measure corruption. An early measure was constructed by Political Risk Services Group, the publishers of the International Country Risk Guide. As part of a country's risk assessment, the guide tries to focus on actual and potential corruption where nepotism and political ties to businesses may take place. Their measure is a way to alert potential foreign investors of dangers that can form challenges to the government of a certain nation when corruption is exposed causing widespread discontent. Such backlash can overthrow a government and be of cost for foreign investors. Hence, the measure is designed in such a way that ties corruption to potential political instability.

A most widely used measure of corruption is the one published by Transparency International; the Corruption Perception Index. The measure utilizes data from 11 different organizations and 12 data sources and aims to evaluate the perception of corruption. The different data sources include country rankings in different aspects from the African Development Bank Governance Ratings, Bertelsmann Foundation Sustainable Governance Indicators, Bertelsmann Foundation Transformation Index, Economist Intelligence Unit Country Risk Ratings, Freedom House Nations in Transit, Global Insight Country Risk Ratings, IMD World Competitiveness Yearbook, Political and Economic Risk Consultancy Asian Intelligence, Political Risk Services International Country Risk Guide, World Bank - Country Policy and Institutional Assessment, World Economic Forum Executive Opinion Survey and the World Justice Project Rule of Law Index.

Corruption is often perceived as a developing nation's phenomena and seen as an obstacle to development. It is viewed as a major hindering factor in attracting foreign direct investment and in drafting proper development polices. However, the inquiry into whether corruption is a cause or an effect is one that frequently engages researches. Is corruption a result of poverty or a cause of it has been a major question of economic research. In addition, research has been focused on many different correlations that can be made; how corruption relates to openness and trade, income inequalities, political institutions, the degree of urbanization and many other factors. In addition, much research investigates the most effective way to decrease corruption, comparing country experiences and correlating corruption to proxies of the rule of law and efficient institutions. This paper aims to shed some light on recent trends in corruption literature, the techniques and data used and the latest findings in this area.

CORRUPTION LITERARTURE

Early corruption research can be traced back to the 1960's and 1970's. Work by Becker and Stigler (1974) focused on the relationship between the government official and the public. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Corruption, Business, and Economic Development
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.