Topic > The use of experimental economics to address the problem of corruption around the world

Corruption in public and government bodies exists globally and disturbs the world economy through money laundering, with various forms such as appropriation embezzlement, bribes and abuse of power. As Bloomberg reported in May 2018, the recent Malaysian 1MDB scandal involved more than 10 countries to launder the misappropriation of Malaysian public funds. It is up to regulators and law enforcement to prevent this scenario from happening again in the future by considering the causal characteristics and effects, as the main basis for forming better regulations and investigations. In this statement, I would like to examine whether experimental economics can be used as a reference to generalize the characteristics of this problem worldwide and to help policymakers/regulators in this matter. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay To begin with, the advantage of experimental economics is that we can clearly see the characteristics of fraudulent activities based on a small sample size. This will allow us to understand how corruption mechanisms work in economic events, whether they consider some aspects such as rules, norms, policies and social preferences or whether they focus only on their own personal interest. We can analyze the data and then evaluate how public officials carry out fraud. Next, we can establish practical preventive actions and regulations to react and avoid these actions. In China, as mentioned by Yu (2008), corruption is generally conducted by government officials who abuse power and misappropriate funds for their own gains. In other words, corrupt officials use their powers to maximize their wealth by setting up systematic businesses and organizing tenders and government contracts for their partners and relatives. In my opinion, it is agreed that the achievable measures that can be taken by politicians here are to form better anti-corruption commissions and controls, in order to mitigate this type of corruption. Furthermore, with experimental economics, Fehr (2014) stated that several factors can be observed in the experiment that are not easily observable in the real world. Therefore, this could capture most views of fraudulent activities, whether they have been previously identified or have never been identified. However, this method also has questionable drawbacks, since we cannot simply apply this experimental result to the world bureaucracy. This is because human behavior is influenced by various perceptions that we cannot generalize from a small sample. As stated by Levit and List (2007), the choices that individuals make are highly dependent not only on the financial implications, but also on the circumstances, multiple variables and context in which a decision is embedded, and how samples are selected experimental. . Especially in developing countries, laws and regulations are not well established and provide more opportunities to commit corruption and fraud. Knutsen et al (2016) stated that in Africa the mining industry is often corrupt by giving/receiving bribes. From Morland (2018), we are informed that doing business in India commonly involves corrupt activities. In these cases, we should take other measures to mitigate these corruptions, ranging from formal education to teach future generations how to avoid corruption to strong efforts at transparency and oversight in government bodies. Also, the economy.