A Quantitative Analysis Of Correlation Between The Wage Of Civil Servants And Corruption

Corruption has long been considered as one of the most troublesome problem, the harm brought by which is quite great as well. On one hand, corruption may not only lower the efficiency of the government, but also reduce the number of public investment, distort the priority of the expenditure, and restrain the growth of economy. On the other hand, rent-seeking and corruption may broaden the income gap between social members directly or indirectly, and even threaten the safety and stability of the country. As to the cure of the corruption, scholars have discussed extensively. While as one of the methods of curing corruption, the effectiveness and feasibility of raising the wage of civil servants is especially concerned in our socialist system and in the period of the transition of the economy. The extent to which is salary top-ups feasible to the move of anti-corruption? This has become the most problem need to be settled with empirical data and also an important part to make supplement of the relative theory.Therefore, on the basis of the research on this subject, we use the panel data of China covering from 1978 to 2012, and give the relative definition, criteria, the basic Theory, and then combine with the reality of our country, make the regression of the corruption and wage with the econometrics model. We also illustrate the results of the regression and give some suggestions of curing corruption. The conclusion of this essay is that the level of corruption can be restrained through raising the wage of the civil servant. According to our calculation, a standard devaiation's raising of the relative wage of civil servant may result in a 22.99% decrease of the corruption. However, it also needs other tools to cure corruption together, instead of only by raising the wage, which is not only of too high cost, but also unrealistic. The results show that 1% increase of input of the anticorruption leads to 42843.88 yuan decrease of the sum of corruption. Besides, the results of our research show that corruption is negatively related to the growth speed of population, and positively related to the heterogeneity of the people, and our data support the relationship between corruption and educational level of the people.According to the results of the quantitative analysis, we propose that it is necessary to construct the increasing mechanism of civil servants' wages and the system of wage comparison, and increase their wages gradually and reasonably; It's also imperative to continue to develop our economy and make better system of the law and supervisory. Besides, incorrupt government culture should be constructed nationwide.