TY - JOUR
T1 - How business community institutions can help fight corruption
AU - DIXIT, Avinash K.
N1 - Paper presented at the 25th Annual Bank Conference on Development Economics (ABCDE), Jun 02-03, 2014, World Bank Headquarters, Washington, DC.
PY - 2015
Y1 - 2015
N2 - Collective action by the business community to counter corruption in the award of government licenses and contracts is analyzed, by analogy with contract enforcement institutions studied by economic historians and contract law scholars. The suggested anti-corruption institution comprises a no-bribery norm, a system to detect violations, and a multilateral ostracism penalty upon conviction in a tribunal. In combination with formal state law, a business institution of sufficient quality-probability of detection and severity of punishment-can eliminate corruption; a less good institution helps reduce it. The legal and communal institutions together achieve substantially better outcomes than either by itself.
AB - Collective action by the business community to counter corruption in the award of government licenses and contracts is analyzed, by analogy with contract enforcement institutions studied by economic historians and contract law scholars. The suggested anti-corruption institution comprises a no-bribery norm, a system to detect violations, and a multilateral ostracism penalty upon conviction in a tribunal. In combination with formal state law, a business institution of sufficient quality-probability of detection and severity of punishment-can eliminate corruption; a less good institution helps reduce it. The legal and communal institutions together achieve substantially better outcomes than either by itself.
UR - http://commons.ln.edu.hk/sw_master/6804
UR - http://www.scopus.com/inward/record.url?scp=84939634653&partnerID=8YFLogxK
U2 - 10.1093/wber/lhv016
DO - 10.1093/wber/lhv016
M3 - Journal Article (refereed)
SN - 0258-6770
VL - 29
SP - S25-S47
JO - World Bank Economic Review
JF - World Bank Economic Review
IS - Supp.
ER -
