Do Natural Resources Breed Corruption? Evidence from China

Do Natural Resources Breed Corruption? Evidence from China

Source: Environmental and Resource Economics, 2015

Author(s): Jing Vivian Zhan

Countries: China

Topics: Conflict Causes, Governance

Added: 07/05/2017


Rampant corruption is often observed in resource-rich countries, especially developing countries with weak political institutions. However, controversies exist regarding whether and how natural resources systematically breed corruption. With empirical evidence from China and through a subnational approach, I shed new light on the impacts of resources on corruption. By qualitative study of corruption cases, I identify the causal channels through which resources contribute to corruption, and using cross-regional and longitudinal statistical analysis on a unique dataset of corruption rates in China, I find that resource dependence significantly increases the propensity for corruption by state employees.


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