Institutions, Petty and Grand Corruption

• In Event: Making Democracy Work

Abstract

I investigate the relationship between different types of corruption, specifically, grand corruption, which involves changes in the rules of the game, and petty corruption, which is about bureaucrats tolerating violations of already existing rules. Under certain conditions, firms use the Teo corruption strategies as complements, but under others, as substitutes. I argue that particular institutions have different effects on these different corruption strategies. I test my theoretical expectations using both country-level and firm-level data on corruption experiences from Central and East Europe.

Author

• Tanya G Bagashka, University of Houston