Abstract
In this chapter we study corruption risks in EU defense procurement. Defense procurement has long been thought to present significant potential for corruption and state capture. Using a large dataset of contracts covering nearly ten years and applying an objective corruption risk indicator, we find strong empirical support for this hypothesis. In nearly all countries our corruption risk indicator is higher for military contracts than for contracts in general. By mapping national markets as complex networks, we find that risks are significantly clustered, suggesting potential islands of state capture. The centralization of corruption risk varies from country to country: in some corruption risk is significantly higher in the periphery, while in others it is significantly higher in the center of the market. We argue that network maps of procurement markets are an effective tool to highlight hotspots of corruption risk, especially in the overall high risk context of defense contracting.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
