A spatial analysis of corruption, misallocation, and efficiency
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RESEARCH ARTICLE
A spatial analysis of corruption, misallocation, and efficiency Shuhong Wang 1,2 & Danqing Zhao 1 & Hanxue Chen 1 Received: 22 April 2020 / Accepted: 11 June 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Political corruption is considered one of the major obstacles to achieving high-quality economic development in developed and developing countries. This study first calculates the ecological footprints of 29 provinces in China based on China’s provincial panel data from 2006 to 2015. The provinces’ ecological efficiencies were then calculated. The relationship between government corruption and ecological efficiency is researched, and the result shows that such a relationship is not linear. At different levels of ecological efficiency, government corruption has different effects on ecological efficiency. Finally, the resource misallocation index is introduced, and the spatial error model is used to further test the impact of government corruption and resource misallocation on ecological efficiency. The regression results show that high levels of government corruption and resource allocation distortion will cause a decrease in regional ecological efficiency, which adversely affects the sustainable development of the economy. Keywords Government corruption . Ecological efficiency . Resource misallocation . Ecological footprint . Sustainable development . China’s corruption
Introduction Government corruption is considered a major impediment to economic and social development, including investment (Wu 2006; Javorcik and Wei 2009), inflation (Al-Marhubi 2000), and economic growth (Park 2012; Saha and Gounder 2013; Evrensel 2010), yet it remains pervasive throughout developed and developing countries (Avis et al. 2018). Politicians embezzle billions of dollars for private gain each year, which has an adverse effect on total factor productivity (Buera et al. 2011) and energy efficiency (Ozturk et al. 2019). Although scholars have demonstrated why corruption affects productivity from different angles and methods (Aidt 2016; Bertrand et al. 2007; Brandt et al. 2012; Buera et al. 2011; Dollar and Wei 2007; Méon and Weill 2008; Restuccia and Rogerson 2008), there are still at least three shortcomings in related Responsible editor: Philippe Garrigues * Hanxue Chen [email protected] 1
School of Economics, Ocean University of China, Qingdao 266100, People’s Republic of China
2
Institute of Marine Development, Ocean University of China, Qingdao 266100, People’s Republic of China
empirical research. First, most of these studies are based on metrics that measure perceptions rather than the actual degree of government corruption. Second, many conclusions are unconvincing because they rely on cross-country analysis (Ferraz and Finan 2011). Third, many only focus their attention on economics. However, the environment and with it the economy is the most important thing that we have to consider. This study tries to fill this gap. We first exploit ecological footprint variation
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