Non-collusive Corruption: Theory and Evidence from Education Sector in Bangladesh

We study non-collusive corruption in the education sector. For this purpose, we construct a simple theoretical model that captures non-collusive corruption between service providers (teachers) and service demanders (students). The model shows that the bribe paid by the service demander increases with the level of red tape and her income level, but it decrease with the improvement of the individual’s social status. We also establish that with the increase in the income and the social status of the private agent (networks), the probability of paying bribes and the severity of red tape declines. Then we use a survey data set collected in 2007 by Transparency International Bangladesh, to test the predictions of the model. The estimations confirm that both the probability of being subjected to noncollusive corruption and the cost of corruption is related to the individual characteristics of the bribe payer. Moreover, network connections are an important factor that helps to ease the burden of corruption on private agents, which is also likely ensuring the persistence of this type of corruption.Education, non-collusive corruption, bribery, Bangladesh

The Recession and its Impact on Foreign Direct Investment Flows into the Food System of Less Developed Countries

This study investigates the effects of the current recession on foreign direct investment (FDI) in the food sectors of developing countries. The study tests the hypothesis that the economic recession adversely affects FDI flows in the food sector. The specific objectives are: to identify determinants that influence FDI inflows; to develop an econometric model to estimate changes in FDI inflows as influenced by factor determinants, including the present recession; and to compare the impact of the recession on FDI in the food system in different developed and developing economies.Recession, FDI, Developing countries, Agricultural and Food Policy, International Development, International Relations/Trade,