ON THE RENTAL NATURE OF CORRUPTION: ECONOMIC AND LEGAL ASPECTS

Corruption has always been a part of human civilization development history but in recent years its amount has become threatening: with rare exceptions society fails to solve this problem. The essential basis for effective fight against corruption is understanding of the nature and processes that are in the forefront of it. Despite vast experience of theoretic comprehension of this social phenomenon there is no unity in its understanding. In spite of absence of adequate argumentation a theory of rent origin of corruption gained wide spreading among economists and legal theorists. Historical prerequisites of such theory are based on traditionally negative attitude of society to recipients of land rent as well as to corruptive profit getters. In view of this the authors have conducted cross-disciplinary research in order to set an opportunity to make a formalized description of particular case of corruption with a use of economical and statical model of land rent. As a main methodological problem of the research the authors chose latency of processes that are in the forefront of formation and distribution of land rent as well as the essence of actions that cause formation of corruptive income. Comparison of formation mechanisms of rental and corruptive income was made based on development of statistical model of Ricardian rent concept in agriculture. As a result it was shown that the actions that have marks of corruption can cause change of regulative terms of land rent formation, and on this basis – change of separate components of quasi-rent. Herewith it was determined that there are no rental effects caused by corruptive impact and respectively making up the source of corruptive rental income. Basing on the obtained results the authors made a conclusion about invalidity of theory about identity of rent and corruptive benefit formation mechanisms and necessity of separate corruption model development.

corruption, business corruption, rent, land rent, potential rent, differential rent, quasi-rent, rental income, corruptive rent, rent-seeking behavior, statistical modeling, corruptive expenses.

Shchipanov E. Yu., Cherednichenko V. G. On the rental nature of corruption: economic and legal aspects. Business. Education. Law, 2020, no. 1, pp. 93–101. DOI: 10.25683/VOLBI.2020.50.154.