Liang, Y; Sun, H; Chen, M and Liu, J (2021) Research on fraudulent, corrupt and collusive practices in infrastructure projects. In: Scott, L and Neilson, C J (eds.) Proceedings of 37th Annual ARCOM Conference, 6-7 September 2021, Online Event, UK.
Abstract
Based on the existing research, fraud, corrupt and collusion are serious impediments for infrastructure development. To explain the reasons of fraudulent, corrupt and collusive practices, this paper proposes that the effects of control of corruption (CC) and regulatory quality (RQ). We collected total 146 sanctioned and normal infrastructure projects from World Bank Projects and Operations database and searched the control of corruption and regulatory quality scores of different counties from World Governance Indicators. Logistic regression model is applied in this paper to test the correlation between fraudulent, corrupt and collusive practices and CC and RQ. Based on the regression results, this paper presents that the control of corruption and regulatory quality are both negatively related with fraudulent, corrupt and collusive practices. Besides, the effect of interaction between control of corruption and regulatory quality on fraudulent, corrupt and collusive practices is positive. In other words, the worse control of corruption and regulatory quality results in the higher possibility to cause fraudulent, corrupt and collusive practices. Also, the worse regulatory quality will aggravate control of corruption obviously. This research provides suggestions to World Bank Group (WBG) and other similar organizations that more supervision and investigation is necessary for the firms/individuals with higher possibility of fraudulent, corrupt or collusive practices in infrastructure projects.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | infrastructure; control of corruption; regulatory quality; fraud; corrupt |
| Index terms: | infrastructure development, collusion, database, World Bank, logistic regression, governance, fraud, supervision, interaction, infrastructure project, corruption, investigation |
| Subjects: | institutional frameworks, business, data collection methods, control systems, data management, behavioral psychology, statistical analysis, professional ethics, infrastructure and transport systems, tendering, infrastructure engineering |
| Topics: | Procurement, Governance, Research Practice, Project Management, Engineering Principles, Legal Issues, Digital Applications |
| Descriptive scope: | 3 PCA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here