TY - CHAP
T1 - Networked Corruption Risks in European Defense Procurement
AU - Czibik, Ágnes
AU - Fazekas, Mihály
AU - Sanchez, Alfredo Hernandez
AU - Wachs, Johannes
N1 - Publisher Copyright:
© 2021, The Author(s), under exclusive license to Springer Nature Switzerland AG.
PY - 2021
Y1 - 2021
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=85116093159&partnerID=8YFLogxK
U2 - 10.1007/978-3-030-81484-7_5
DO - 10.1007/978-3-030-81484-7_5
M3 - Chapter
AN - SCOPUS:85116093159
T3 - Understanding Complex Systems
SP - 67
EP - 87
BT - Understanding Complex Systems
PB - Springer Science and Business Media Deutschland GmbH
ER -