Abstract

The relationship between corruption and the market has long been contested. What are the effects of marketization on corruption? Would market competition reduce corruption as some argue? Or is marketization a Pandora’s Box for the spread of corruption as others suggest? Using China as a case and a dataset of 7,305 corruption-related court judgments, this paper seeks to address these questions. The findings indicate that marketization has a dual effect on corruption. Expanded market exchanges likely raises the monetary value accrued through corrupt activities, but marketization also exerts a conditional effect by restraining political power from seeking personal gains.

Citation

Li, H. and Gong, T. (2020). Panacea or Pandora's Box? The Dual Effect of Marketization on Corruption. Problems of Post-Communism, 67(2), 141-155.