Reviews

Asia Pacific Journal of Management

, Volume 24, Issue 1, pp 97-114

Corruption in Asia: Pervasiveness and arbitrariness

  • Seung-Hyun LeeAffiliated withSchool of Management, The University of Texas at Dallas Email author 
  • , Kyeungrae Kenny OhAffiliated withSchool of Management, The University of Texas at Dallas

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Abstract

How does one understand the differences and similarities of corruption among various Asian countries? We use a recent framework developed by Rodriguez, Uhlenbruck, and Eden (2005) to suggest that corruption has to be examined from two different dimensions: pervasiveness and arbitrariness. Using this framework, we ask why some Asian countries are able to achieve high levels of economic growth in the midst of high level corruption while other countries suffer from economic stagnation. We specifically suggest that more firms would bribe when pervasiveness is high, while fewer firms would bribe when arbitrariness is high. We also look into the implications on foreign direct investment.

Keywords

Corruption Pervasiveness Arbitrariness