Political Economy Approach to Corruption

Corruption is a complicated institutional phenomenon, and also a special economic phenomenon. In the given social, political and economic institutional structure, corruption stems from a rational choice when there are significant differences between private and social benefit, private and social costs. We conclude that thorough anti\|corruption should be a series of long\|run institutional efforts. It is necessary to change the cost benefit analysis of corruption, minimize the expected private benefit of corruption, and also minimize the total social loss of anti\|corruption through institutional change or institutional innovation in social, political, economic and legal structure.