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Anatomy of Grand Corruption: A Composite Corruption Risk Index Based on Objective Data
Corruption Research Center Budapest Working Papers No. CRCB-WP/2013:02
46 Pages Posted: 29 Sep 2013 Last revised: 5 Dec 2013
Mihaly Fazekas
Central European University (CEU); Government Transparency Institute
István János Tóth
Hungarian Academy of Sciences (HAS)
Lawrence P. King
Yale University - Department of Sociology
Date Written: November 1, 2013
Although both the academic and policy communities have attached great importance to measuring corruption, most of the currently available measures are biased and too broad to test theory or guide policy. This article proposes a new composite indicator of grand corruption based on a wide range of elementary indicators. These indicators are derived from a rich qualitative evidence on public procurement corruption and a statistical analysis of a public procurement data in Hungary. The composite indicator is constructed by linking public procurement process ‘red flags’ to restrictions of market access. This method utilizes administrative data that is available in practically every developed country and avoids the pitfalls both of perception based indicators and previous ‘objective’ measures of corruption. It creates an estimation of institutionalised grand corruption that is consistent over time and across countries. The composite indicator is validated using company profitability and political connections data.
Keywords: public procurement, grand corruption, corruption technique, composite corruption risk index
JEL Classification: D72, D73, H57
Suggested Citation: Suggested Citation
Mihaly Fazekas (Contact Author)
Central european university (ceu) ( email ).
Quellenstrasse 51 Vienna, 1140 Austria
Government Transparency Institute ( email )
Kecskemét Hungary
Hungarian Academy of Sciences (HAS) ( email )
Budapest Hungary
Yale University - Department of Sociology ( email )
493 College St New Haven, CT 06520 United States
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COMMENTS
The Corruption Risk in the Local Government of Cities with County Rights and that of Budapest from 1999 to 2023. Publications, Research Notes, Short Papers corruption risk, Hungary, local government, municipal elections, political cycles, trends. May 23, 2024. The research was supported by the German Marshall Fund of the United States.
The Corruption Research Center Budapest was created in response to the growing need for independent research on corruption and quality of government. Hence, the Center was established as a non-partisan think tank independent of governments, political parties or special interest groups.
This is an academic research institute within the Corvinus University of Budapest where the scholars are not only doing academic work but actively engaging in promoting their findings, collaborating with other NGOs (e.g. Energy Control Project, TI-HU), and seeking media coverage of uncovered corrupt cases.
The high corruption risk is indicated by the fact that the proportion of contracts with more than three bidders in 2020-2021 for EU-funded contracts was only 29 and 33 percent, respectively.
A Korrupciókutató Központ Budapest (angolul Corruption Research Center Budapest, CRCB) 2013 novemberében [1] alapított civil szervezet, amelynek tevékenysége a magyarországi korrupcióval kapcsolatos független kutatásra, illetve az eredmények közzétételére terjed ki.
The Corruption Research Center Budapest was created in November 2013 in response to the growing need for independent research on corruption and quality of government in Hungary.
Corruption Research Center Budapest, Budapest, Hungary. 1,896 likes · 4 were here. The CRCB was created in November 2013 in response to the growing need for independent research on the
The Corruption Research Center Budapest was created in November 2013 in response to the growing need for independent research on corruption and quality of government in Hungary.
The Corruption Research Center Budapest was created in November 2013 in response to the growing need for independent research on corruption and quality of government in Hungary. The central...
This article proposes a new composite indicator of grand corruption based on a wide range of elementary indicators. These indicators are derived from a rich qualitative evidence on public procurement corruption and a statistical analysis of a public procurement data in Hungary.