The Correlation Between Wages And Corruption Of Civil Servants In Local Governments

This paper analyses the correlation between the wages and corruption of civil servants in both static(Fixed Effected Model)and dynamic(GMM Model)level using panel data of the 29 provinces in our country from 1987 to 2015.The result of the analysis shows that the corruption level is higher before 1997 than after it.Government corruption is continuous,that is to say this year corruption is influenced by last year corruption strongly.Increasing civil servant’ s wages can certainly curb corruption,but with the wages keeping on increasing,the effect will decrease and play counter effect when the civil servant’ s wages to capita GDP is 1.96.The result also shows that capita GDP,the number of people prosecuted in criminal cases,urbanization level and opening-up level are all have positive correlation with corruption,meanwhile the expenditure of legal authorities and education level have no clear relationship with corruption.The consumption of government and the number of civil servants are influenced by other factors which cannot be testified.For the regional differences,the inflection point which increasing corruption in the east is 2.25,the middle part is 2.125,and the west is 1.75.Civil servant’ s wages can play more important role to control corruption in the middle part and the west than in the east.The paper puts forward some suggestions based on the result of analysis from incentives,controlling,suiting local circumstances and putting the corruption during the development in perspective.