Corruption and Economic Development in the Peoples' Republic of China.

Theoretical work has provided convincing reasons to believe that corruption undermines economic development over time. Empirical testing of these theories has tended to look for relationships between corruption and different channels of economic development using cross-country, large-n analysis. Most studies assume, however, that all developmental models are equally impacted by corruption at all times. This paper tests the proposition that corruption inevitably leads to economic atrophy using China as a case study. The empirical results support the conclusion that thinking about corruption in context-dependant terms is valuable for helping understand the relationship between corruption and economic development. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]