How business community institutions can help fight corruption
Document Type
Journal article
Source Publication
World Bank Economic Review
Publication Date
1-1-2015
Volume
29
Issue
Supp.
First Page
S25
Last Page
S47
Publisher
Oxford University Press
Abstract
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.
DOI
10.1093/wber/lhv016
Print ISSN
02586770
E-ISSN
1564698X
Publisher Statement
Copyright © The Author 2015. Access to external full text or publisher's version may require subscription.
Additional Information
Paper presented at the 25th Annual Bank Conference on Development Economics (ABCDE), Jun 02-03, 2014, World Bank Headquarters, Washington, DC.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Dixit, A. K. (2015). How business community institutions can help fight corruption. World Bank Economic Review, 29(Supp.), S25-S47. doi: 10.1093/wber/lhv016