Corruption risk in contracting markets: A network science perspective

Wachs,J., Fazekas, M., Kertész, J. (2020). Corruption risk in contracting markets: A network science perspective. International Journal of Data Science and Analytics. Available online.

We use methods from network science to analyze corruption risk in a large administrative dataset of over 4 million public procurement contracts from European Union member states covering the years 2008–2016. By mapping procurement markets as bipartite networks of issuers and winners of contracts, we can visualize and describe the distribution of corruption risk. We study the structure of these networks in each member state, identify their cores, and find that highly centralized markets tend to …

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Lights on the shadows of public procurement: Transparency as an antidote to corruption

Bauhr, M., Czibik, Á., Fazekas, M., and de Fine Licht, J. (2017). Lights on the Shadows of Public Procurement. Transparency in government contracting as an antidote to corruption? Governance Special Issue: https://doi.org/10.1111/gove.12432.

The increased focus on marketizing mechanisms and contracting‐out operations following the New Public Management reform agenda has sparked a debate on whether the close interactions between public and private actors might drive corruption in the public sector. The main response to those worries has been increased transparency, but so far empirical evidence of its efficiency remains scant and mixed. This article argues that the beneficial effects of transparency …

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The extent and cost of corruption in transport infrastructure: New evidence from Europe

Fazekas, M. & Tóth, B. (2018). The Extent and Cost of Corruption in Transport Infrastructure: New evidence from Europe. Transportation Research Part A: Policy and Practice. Vol. 113, July 2018, pp. 35–54.

Transport infrastructure provision from roads to waterways involves large amounts of public funds in very
complex projects. It is hardly a surprise that all across Europe, but especially in high corruption risk countries,
it is a primary target of corrupt elites. This article provides a state-of-the-art review of the literature on the cost
of corruption and estimates the level of corruption risks and associated costs in European infrastructure…

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Grand corruption and government change: an analysis of partisan favoritism in public procurement

Dávid-Barrett, E. & Fazekas, M. (2019). Grand corruption and government change: an analysis of partisan favoritism in public procurement. European Journal on Criminal Policy and Research. https://doi.org/10.1007/s10610-019-09416-4

Incoming governments sometimes abuse their power to manipulate the allocation of government contracts so as to buy loyalty from cronies. While scandals suggest such practices are relatively widespread, the extent of such partisan favoritism is difficult to measure and the conditions under which it flourishes under-theorized. Drawing on theory regarding the role of institutions as constraints on corruption, we identify three spheres of political influence over government contracting and show how elites

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Social capital predicts corruption risk in towns

Wachs, J., Yasseri, T., Lengyel, B., Kertész, J. (2019). Social capital predicts corruption risk in towns. Royal Society Open Science 6: 182103. http://dx.doi.org/10.1098/rsos.182103

Corruption is a social plague: gains accrue to small groups, while its costs are borne by everyone. Significant variation in its level between and within countries suggests a relationship between social structure and the prevalence of corruption, yet, large-scale empirical studies thereof have been missing due to lack of data. In this paper, we relate the structural characteristics of social capital of settlements with corruption in their local governments. Using datasets from Hungary, we quantify corruption risk …

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