Regulation Encourage Corruption? -Empirical Study Based on Provincial Panel Data

Due to market failure leads to excessive pollution, unemployment, food and drug safety and the polarization between the rich and the poor and some other economic and social problems, therefore, government intervention in the economy has become an important means to cure these market disorders. However, in the practice of local government regulation in our country, there is a large number of power rent produced. The empirical test on the relationship between government regulation and the level of corruption used provincial panel data in China in this paper, shows that the government regulation level increased significantly enhance the level of corruption, provides empirical evidence on China's anti-corruption practice.