Corruption and Competition: Toward Economic Theory of Corruption
Proceeding of the 17th International Conference Current Trends in Public Sector Research, Brno: Masaryk University, 2013
14 Pages Posted: 13 Oct 2012 Last revised: 9 May 2013
Date Written: October 12, 2012
Why corruption persists in governmental organization? While corruption is a problem of private sector as well as governmental sector, economic experts rather attempt to solve corruption in governmental organization. Moreover, economic literature sometimes defines corruption as a problem of the state. In this paper, we argue that the reason for persistence of corruption in governmental organization is the lack of monetary calculation within bureaucratic management and lower intensity of political competition in comparison with entrepreneurial market process. Market process serves as a means of feedback for efficient organizational arrangement.
Keywords: Corruption, bureaucratic management, market process, monetary calculation, political corruption
JEL Classification: D72, D73, D82, L26, P51
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