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Article: Does Corruption Hinder Private Businesses? Leadership Stability and Predictable Corruption in China

TitleDoes Corruption Hinder Private Businesses? Leadership Stability and Predictable Corruption in China
Authors
Issue Date2016
PublisherBlackwell Publishing, Inc. The Journal's web site is located at http://www.blackwellpublishing.com/journals/GOVE
Citation
Governance, 2016 How to Cite?
AbstractWe study whether corruption hinders businesses by investigating China’s private enterprises, which have developed rapidly despite high corruption levels. We argue that a key factor determining the effects of corruption is corruption predictability, which is significantly influenced by government leadership stability. When the same leaders remain in major offices for long tenures, corruption is relatively predictable, reducing hindrance to businesses. When leaders change frequently, entrepreneurs need to constantly cultivate new connections with officials and face more uncertainty; therefore, corruption becomes a major obstacle. We conduct field interviews to explore channels through which leadership stability encourages predictable corruption. We also use the 2012 World Bank Enterprise Survey of Chinese private firms and develop a novel measure of leadership stability of the local Chinese government based on a self-collected data set of municipal party committees to test our hypotheses. Results of various models are consistent with our hypotheses.
DescriptionSpecial Issue
Persistent Identifierhttp://hdl.handle.net/10722/228740
ISSN
2015 Impact Factor: 3.424
2015 SCImago Journal Rankings: 2.126

 

DC FieldValueLanguage
dc.contributor.authorZhu, J-
dc.contributor.authorZhang, D-
dc.date.accessioned2016-08-23T14:06:48Z-
dc.date.available2016-08-23T14:06:48Z-
dc.date.issued2016-
dc.identifier.citationGovernance, 2016-
dc.identifier.issn0952-1895-
dc.identifier.urihttp://hdl.handle.net/10722/228740-
dc.descriptionSpecial Issue-
dc.description.abstractWe study whether corruption hinders businesses by investigating China’s private enterprises, which have developed rapidly despite high corruption levels. We argue that a key factor determining the effects of corruption is corruption predictability, which is significantly influenced by government leadership stability. When the same leaders remain in major offices for long tenures, corruption is relatively predictable, reducing hindrance to businesses. When leaders change frequently, entrepreneurs need to constantly cultivate new connections with officials and face more uncertainty; therefore, corruption becomes a major obstacle. We conduct field interviews to explore channels through which leadership stability encourages predictable corruption. We also use the 2012 World Bank Enterprise Survey of Chinese private firms and develop a novel measure of leadership stability of the local Chinese government based on a self-collected data set of municipal party committees to test our hypotheses. Results of various models are consistent with our hypotheses.-
dc.languageeng-
dc.publisherBlackwell Publishing, Inc. The Journal's web site is located at http://www.blackwellpublishing.com/journals/GOVE-
dc.relation.ispartofGovernance-
dc.rightsThe definitive version is available at www.blackwell-synergy.com-
dc.titleDoes Corruption Hinder Private Businesses? Leadership Stability and Predictable Corruption in China-
dc.typeArticle-
dc.identifier.emailZhu, J: zhujn@hku.hk-
dc.identifier.authorityZhu, J=rp01624-
dc.identifier.doi10.1111/gove.12220-
dc.identifier.hkuros260190-
dc.publisher.placeUnited States-

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