2015
DOI: 10.1007/s11127-015-0297-0
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Construction corrupts: empirical evidence from a panel of 42 countries

Abstract: The construction sector, whether privately or publically financed, is characterized by potentially large rents and government intervention. Not surprisingly then, both casestudy and survey evidence has been provided highlighting the problem of corruption in this sector. In this article, we test the proposition that a bigger construction sector is likely to be inimical to clean government based on a panel of 42 countries over the period 1995 to 2011. We control for a range of potentially counfounding variables … Show more

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Cited by 26 publications
(12 citation statements)
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“…This means that the decrease of government intervention in the market contributes to the decrease of SESR, SSCCR, SER and SCR, which could improve the CSR efficiency. Corruption is more likely to occur in the construction industry in the context of high government intervention [ 88 ], and firms are likely to adopt the rent-seeking behavior rather than the corporate environmental and charitable behavior to obtain more benefits in corrupt context [ 89 ], leading to the company’s lack of incentive to improve the CSR efficiency. Therefore, to improve CSR efficiency of construction companies, the government should weaken its intervention in the market.…”
Section: Resultsmentioning
confidence: 99%
“…This means that the decrease of government intervention in the market contributes to the decrease of SESR, SSCCR, SER and SCR, which could improve the CSR efficiency. Corruption is more likely to occur in the construction industry in the context of high government intervention [ 88 ], and firms are likely to adopt the rent-seeking behavior rather than the corporate environmental and charitable behavior to obtain more benefits in corrupt context [ 89 ], leading to the company’s lack of incentive to improve the CSR efficiency. Therefore, to improve CSR efficiency of construction companies, the government should weaken its intervention in the market.…”
Section: Resultsmentioning
confidence: 99%
“…These include property taxes on agricultural land (1), on motor vehicles (10), and on transfers of real estate ownership (7). The latter variable is related to the construction sector, traditionally associated to corruption (Kyriacou et al, 2015). Some of these categories refer to national tax revenues that are transferred to municipalities, as in the case of taxes from export of industrialized products (4).…”
Section: Interpreting the Predictionsmentioning
confidence: 99%
“…According to the study of Yin et al, the best policy means to support OFDI is to relax regulatory policy and introduce supervision and service policies [21]. Moreover, investment in transport infrastructure involves the government's decision-making on large, complicated projects with uncertain standards, which is extremely susceptible to government corruption [22,23]. Considering tangibility and visibility of transportation investment, politicians participating in the election may be influenced by politics, and thus their investment efficiency is not optimal [24].…”
Section: Literature Reviewmentioning
confidence: 99%