On The Government Procurement Corruption

Government procurement is one of the most important government departments of commercial activities in the market economy, meanwhile, it plays an important role in the government public finance expenditure and public management, with the powerful policy function. Government procurement plays a role that cannot be ignored in the macroeconomic regulation and control, maintaining the stability of national economy, the adjustment of industrial structure and the financial budget system.The government as the " market trader" in government procurement, because of the "Homooeconomicus", procurement corruption is inevitable. The corruption in government procurement not only caused a great economic loss so that public resources cannot be rationally allocated, social economic efficiency seriously reduced and social welfare loss, but also seriously polluted the social atmosphere,making the unwholesome tendencies grow and spread and the social justice damaged. The government procurement may fall into serious "crisis of trust", has brought serious negative influence to the economic and society. Although the system and laws of government procurement has been continuously improved, the problem of corruption in government procurement cannot be ignored in the reform of government procurement system. The solution and regulation of procurement corruption government is imminent.Chinese government procurement is relatively later than western countries, at the same time, because of the complexity and particularity of the national conditions, procurement corruption appears to have its own reasons. The appearance of corruption in centralized procurement mode adds to the difficulty of the corruption prevention and regulation. In view of the particularity of China’s government procurement, procurement corruption has its own reasons and performance. So through the favorable experience of western developed countries’ government procurement mode, we can formulate the necessary measures to prevent corruption and system that is suitable to China’s actual conditions. The " Homooeconomicus " that exists in the procurement market provides the basic condition for government procurement corruption. Market incomplete and asymmetric information makes the possibility of the collusion and fraud.Because of the government procurement complex diversity, the principal and agent have the pursuit of "collusion" and "rent-seeking" to maximize their own interests with the imperfect supervision system and incentive system of the policy environment. The existence of a large number of procurement corruption is closely related to the incompletely national procurement laws and regulation rules. Through analysis of the basis theories of government procurement corruption, we can build the system of preventing procurement corruption.In this paper, by constructing game model of government procurement corruption, using the principal-agent theory and the theory of rent-seeking corruption in government procurement make the economic analysis. Making the analysis of the major participants in government procurement, including the government, the government procurement staff, suppliers to analyze the prevention and restraint of government procurement corruption.In this paper, the research content mainly including four parts of the analysis and discussion. In the first part of the article make the full summary be concise and to the point, we discuss the reasons of government procurement corruption as well as the significance of the current environment, including the domestic and foreign scholars on the procurement corruption research literature are analyzed and summarized briefly, for the text structure in detail. In the second part of the article, we put forward the problems. We has made the brief introduction and summary related to the concept of government procurement and put forward the government role in purchasing behavior hypothetically and introduced each link of government procurement, through the way of chart in detail told the government procurement performance and problems in recent years, doing the background for the government procurement corruption. The second part brings to the appearance of procurement corruption, and make a brief description of the current situation of Chinese government procurement corruption, and make the link of government procurement and government procurement related processes. The third part of the article enters into the analysis of questions.From an economic point of view, we put forward the theory of " Homooeconomicus "; through the detail analysis of the centralized procurement mode,we put forward the principal-agent problems caused by procurement corruption; through the principal-agent relationship, we make the specific analysis of causing the government procurement corruption between information incomplete and complete; using the rent-seeking theory to explain the behavior that all involved in this activity. The third part explaining the phenomenon procurement corruption mainly uses the relevant economic models of game theory. The last part of the article focuses on solving problems. Basing on the analysis of economics analysis of procurement corruption in the third part, we continue to use game theory principal-agent theory and rent-seeking theory and try to find out methods to prevent government procurement corruption, on this basis we put forward the institutional and non institutional prevention of government procurement corruption, trying to seek the prevention method from the angle of economics and the rule of law, making the government procurement corruption has been avoided as possible as.