Social status, social norms and bribe giving behaviors of citizens in vietnam

MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY  NGUYEN PHUONG ANH SOCIAL STATUS, SOCIAL NORMS AND BRIBE-GIVING BEHAVIORS OF CITIZENS IN VIETNAM ĺHD DISSERTATION IN ECONOMICS Hanoi ‐ 2022 i MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY  NGUYEN PHUONG ANH SOCIAL STATUS, SOCIAL NORMS AND BRIBE-GIVING BEHAVIORS OF CITIZENS IN VIETNAM SPECIALIZATION: ECONOMICS SPECIALIZATION CODE: 9310101 ĺHD DISSERTATION IN ECONOMICS Supervisor: Assoc Prof Dr Le Quang Canh Assoc Prof Dr Pham Ngoc Linh i Hanoi ‐ 2022 i DECLARATION I hereby declare that this dissertation is my own work, to the best of my knowledge and belief, it contains no material previously published or produced by another party in fulfillment, partial or otherwise, of any other degree or diploma at another University or institute of higher learning, except where due acknowledgement is made in the text I have read and understood the University’s policy on plagiarism I hereby declare on my honor that this dissertation is my own work and does not violate the regulations on good academic practices TABLE OF CONTENT DECLARATION i TABLE OF CONTENT ii ABBREVIATIONS v LIST OF TABLES vi LIST OF FIGURES vii CHAPTER 1: INTRODUCTION .1 1.1 Research rationales 1.2 Research objectives and questions 1.3 Subject and scope of the research 1.4 Research methods 1.5 Contributions of the research 1.6 Structure of the dissertation CHAPTER 2: LITERATURE REVIEW 10 2.1 The concepts: Bribery, Social Status and Social Norms 10 2.1.1 Corruption terms 10 2.1.2 Bribery, Bribe-Giving behaviors 14 2.1.3 Social status/Socioeconomic status 15 2.1.4 Social norms 18 2.2 Consequences of corruption and bribery at individual levels 21 2.2.1 Inequality in accessing public service 21 2.2.2 Reduction in service quality and citizens’ satisfaction with public services 22 2.2.3 Inefficiency in governmental services provision and income distribution 23 2.3 Antecedents of corrupt behaviors among individuals 24 2.3.1 Economic and institutional factors 24 2.3.2 Sociological Factors 26 ii 2.4 Research strands of corruption and bribe behaviors .29 2.4.1 Perceived as a rational action 29 2.4.2 Perceived as an institutionalized practice 33 2.4.3 Perceived as a cultural norm 35 2.4.4 Perceived as a moral failure 38 2.4.5 Bribery game: Experimental studies 40 2.5 Research gaps 42 CHAPTER 3: THEORETICAL FRAMEWORK AND RESEARCH METHODOLOGY 44 3.1 Bribery drivers: passive motivation versus proactive motivation 44 3.2 Research hypothesis development .45 3.3 Data sources 50 3.4 Estimated models and variables 54 CHAPTER 4: EMPIRICAL RESULTS AND DISCUSSIONS 59 4.1 Bribe-giving and Anti-corruption in Vietnam 59 4.1.1 Research context: Corruption and anti-corruption situation in Vietnam .59 4.1.2 Bribe-giving of citizens 64 4.1.3 Social norms of corruption .72 4.2 Descriptive statistics 77 4.3 Estimated results and hypothesis testing 80 4.3.1 Empirical results for Vietnam 80 4.3.2 Robustness checks 85 4.4 Discussion 91 CHAPTER 5: CONCLUSION AND RECOMMENDATIONS 98 5.1 Main findings 98 5.2 Direction for anti-corruption in Vietnam 102 5.3 Implications about anti-corruption measures in Vietnam .104 5.3.1 Improving citizens’ bargaining power over public officials 104 iii 5.3.2 Educating and raising anti-corruption awareness, willingness and actions among citizens, especially young generations 106 5.3.3 Building an anti-corruption and corruption-reporting culture .107 5.3.4 Building transparency and simplification of administrative procedures .110 5.3.5.ther stakeholders, media and social organizations112 5.4 Research limitations and future research 113 5.5 Conclusion .114 REFERENCES 116 APPENDICES 128 iv ABBREVIATIONS CECODES Center for Community Support Development Studies CPI Consumer Price Index EIU Economist Intelligence Unit FDI Foreign Direct Investment GCB Global Corruption Barometer GDP Gross Domestic Products OECD Organization for Economic Co-operation and Development PAPI Vietnam Governance and Public Administration Performance Index PCI Provincial Competitiveness Index UN United Nations UNDP United Nations Development Programme VIF Variance Inflation Factor WB World Bank LIST OF TABLES Table 3.1 Sample description .51 Table 3.2 Description of data at national level 53 Table 3.3 Variable definitions and measures 56 Table Description of survey and data 78 Table Description of defined variables .79 Table Pearson Correlation matrix (Data survey in Vietnam) 81 Table 4 Marginal effects of social status and norms on bribe-giving behaviors of citizens in Vietnam 82 Table Robustness check of social status and norms on bribe-giving behaviors of citizens in Vietnam 85 Table Marginal effects of social status and norms on bribe-giving behaviors of citizens in Asian countries… 87 Table Robustness check of social status and norms on bribe-giving behaviors of citizens in Asian countries… 89 LIST OF FIGURES Figure 3.1: Theoretical analysis framework .50 Figure Control of corruption in the public sector .62 Figure Corruption Perception Index of Vietnam 63 Figure Transparency and Access to Information 63 Figure 4 Bribery rates across the Asia Pacific region in 2017 65 Figure The change of level of corruption in Vietnam 66 Figure Percentage of people who think the level of corruption has increased (Results by regions in Vietnam) 66 Figure To what extent you believe corruption is a problem in the public sector 67 Figure How corrupt are different institutions and groups in society 68 Figure Percentage of people who paid a bribe when accessing basic services (Results by regions in Vietnam) 69 Figure 10 Service users who said they had paid a bribe: (Results by six key public services) 71 Figure 4.11 Why people not report incidents of corruption? 71 Figure 12 How well Vietnamese government are doing at tackling corruption (Percentage of responses) 72 Figure 13 How effective you think your government’s actions are in the fight against corruption? 73 Figure 14 People’s votes for the top priority for government’s anti-corruption measures 74 Figure 15 Ordinary people can make a difference in the fight against corruption .74 Figure 4.16 Views on the most effective actions people can take against corruption 75 Figure 4.17 Percentage of those who agree it is socially acceptable to report corruption 76 Secondly, the dissertation has not yet mentioned individuals who give bribes in different sectors and fields For example, bribe-giving behaviors of individuals might differ in different sectors, such as public schools, public hospital, identity documents, utilities service, police and courts Besides, the behaviors also might be different based on specific income level in different fields Thirdly, some inherent limitations of survey design need to improve in the future research The survey data not control moral value (for example, socially desirable response patterns) Although this survey asked respondents for their experience of bribe behaviours, a significant improvement from other perception and intention surveys, a criticism against survey data may be given A method of bribery experiment could be employed to deal with the issue (Banerjee, Baul, & Rosenblat, 2016; Bühren, 2020) Additionally, it did not observe the cause effects The survey data potentially yielded high external validity, but they did not allow to check the causal effects Thus, the result interpretation should be more cautious, and the causal effects should be addressed in further studies Finally, survey and variables conducted across the Asian emerging countries may be criticized for their homogeneity This limitation should be addressed by questionnaire design, wordings, and data collection methods that ensure respondents have the same understanding and compatible context Also, the relation among socioeconomic status, norms, and bribe-giving varies across the development levels of selected countries, and those issues are ripe for further research 5.5 Conclusion This dissertation has some significant contribution to the academic contribution in corruption and bribe behaviors from individual perspective First, the relationship between socioeconomic status, cultural norms and bribe-giving behaviors of citizens has been understood by the institutional theory, cost/benefit calculation and the bargaining power framework Corruption as a rational choice views bribes as an informal cost that citizens must pay for assessing public services By weighing cost and benefit of the bribe behaviors, citizens decide whether to corrupt or not The bargaining power framework is applied into four dimensions of socioeconomic status, including the level of education, economic status, employment and other individual characteristics The empirical results have proved that the higher a citizen’s bargaining power has, the fewer bribes she pays Accordingly, highly educated citizens are less likely to give bribes due to their capabilities and the availability of alternatives to bribes They have better knowledge to be more critical and less engage in corrupt activities Furthermore, they also use powerful alternatives, such as social relationships and soft power, by reporting officials’ harassment and extortion if challenged while accessing public services The bargaining power framework is extended to explain the bribe-giving of the poor and unemployed in comparison to the low educated people It is convinced that the poor and the unemployed have a low probability of giving bribes because their opportunity cost of giving bribes is considerably high Besides, aging people are less likely to give bribes than the younger Second, institutional theory help explain the role of social-cultural norms on corruption strongly engaging with the bribe-giving activities of citizens As a result, people in communities in which citizens actively engage in anti-corruption practices as social norms, significantly associated with the low probability of giving bribes People living in 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