Corruption in China and Russia compared. Different legacies of central planning

During the first decade after markets became the major mechanisms
of economic coordination in China and the area of the former Soviet Union (FSUA),
corruption was perceived to increase in both. At the same time China experienced rapid
growth while most countries in FSUA experienced steep declines. In the paper I argue
that this difference is difficult to explain within an n-country, cross-section econometric
framework. Instead a case-oriented approach with more institutional specification is
chosen. In particular, the role of the former normative and institutional framework
of central planning is explored. The paper describes some of the explanations of
corruption as it occurred under central planning, including its limitations and how
they may be linked to (negative or positive) growth mechanisms. In addition the posttransition
data on corruption and growth are linked to major political characteristics at
the point of transition.