A corruption economic model and its implications: A new perspective of anti-corruption strategies

Abstract: This paper develops a simple theoretical model of corruption economics and explains why corruption could distort the market and increase the risk factor to investors. Further development of the model has shown that targeting at the effectiveness of the cooperation between corruption officer and briber may not be the best method to eradicate corruption. Transparency of the administrative or institutional system proves to be a more efficient measure to fight corruption in economic terms.