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The political economy of judicial corruption in China: a spatial relationship

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Abstract

Like other developing countries, China has been struggling with corruption. Judicial corruption, in particular, damages the rule of law and presents a market disruption as an outcome of a lack of commitment by the government regarding property rights. This article seeks to explain the variations in judicial corruption within China, and it develops a theory of city-level corruption of judges. The theory is tested by an empirical study with data from the World Bank corruption survey using a Bayesian spatial linear model. While wealth appears to diminish corruption, there is also a strong spatial relationship with regard to the level of judicial corruption in China, indicating that as some regions become less corrupt, surrounding areas also experience a diminution in corruption. Thus, through a process organic to the current regime, China could experience an increase in judicial trustworthiness.

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Notes

  1. A shortcoming of this and some of the other empirical works on corruption in China is reliance on news story coverage or prosecutions, which is itself subject to uncertainty given the tight media control and selective nature of prosecutions in China.

  2. Alternatively, the action that a citizen takes in order to protest injustice must be more costly to them.

  3. One possible alternative to ordinary least squares would be a beta regression, with the variable set to between 0.01 and 0.99. While this would have the advantage of avoiding any potential for predicting nonsensical results, it is computationally far more difficult, and no package currently exists for a spatial regression with a beta dependent variable. Furthermore, given the relative lack of extreme values in the level of trust in the judiciary, the potential for nonsensical predictions is substantially reduced.

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Acknowledgements

The authors are grateful for the two anonymous reviewers for their thoughtful suggestions, which helped the revision of this article. The authors also thank Robert Grafstein, Rongbin Han and Ning Liao for their constructive comments. All errors remain to their own.

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Correspondence to Hongyu Zhang.

Appendix 1

Appendix 1

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figure 5

Box plots of covariates

Table 4 Results of OLS

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Zhang, H., Kaszycki, S. The political economy of judicial corruption in China: a spatial relationship. East Asia 34, 63–78 (2017). https://doi.org/10.1007/s12140-017-9265-2

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  • DOI: https://doi.org/10.1007/s12140-017-9265-2

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