Corruption and market competition. From macro to micro: a critical review

Abstract

This study critically reviews the relationship between corruption and competition, offering a unique perspective compared to previous reviews by examining theoretical assumptions, observation units, and data over different periods. The research identifies four major periods, beginning with the 1960s and development theory when corruption is “grease in the wheel”. The second period, starting in the 1990s, adopts an institutionalist approach, viewing corruption as rent-seeking. The third period focuses on objective measures at the regional level and the last on microlevel analysis. The review highlights differences in findings based on space scale and lack of research on time trends with respect to differences in levels. The study emphasizes the importance of extendible measures and definitions, especially at the local level. Ultimately, it suggests critical tools and open research questions for future analysis aimed at identifying and combating corruption more effectively.