Influence of Corruption Resilience Patterns

# Influence of Corruption Resilience Patterns
## to Profits from E-Commerce for Companies: <br />AI&MLT for Big Data Analysis
### Alexander Shemetev
### CM3001
### 2021/06/09 (updated: 2021-06-09)

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## Topics:

1) Influence of Corruption to E-Commerce

2) Global Corruption Patterns

3) Regional Corruption Patterns: Russia and Czech Republic

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# Topic 1:

### Influence of Corruption to E-Commerce

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# The indirect costs and their influence on the e-commerce campaigns

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# The place of corruption in the system of Porter's five forces in the region

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# The place of the input data (BEEPS) in estimating the e-commerce hidden costs by clusters to develop the marketing strategy and positioning

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# Imputing the processed data on clusters to the analysis of results by markets

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# Turning the distorted data into clusters for sorting to obtain corruption patterns for regional e-commerce campaigns

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# Topic 2:

### Global Corruption Patterns

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# Descriptive statistics in terms of the availability of the data

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# 1.	**Corruption type 1**

payments for supporting the core needs for the operating of any company

the main proxy variable taken is direct access to electric supply

without which no firm (with rare exceptions) may operate in the country

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# Questions:

1) Informal gift or payment expected or requested for an electrical connection?

2) How much of an obstacle is electricity to the current operations of this firm?

* Electric supply corporations  => natural monopolies => REQUESTS TO PAY <= high corruption in country

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# 2.	Corruption type 2

obtaining the necessary legal documents and licenses to function

Licensing is a proxy for this corruption type estimation.

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# Questions:

1) Frequency of unofficial payments or gifts to obtain business licenses and permits

2) When you applied for an operating license was an informal gift requested?

3) Unofficial payments to get licenses and permits + obstacle: business licensing and permits (yes/no)

* if no corrpuption => consitent replies to all questions in many dimensions

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# 3.	Corruption type 3

percentages that companies should pay for normal operating at the market

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# Questions:

1)	“% of unofficial payments to get connected to public services”;
2)	“% of unofficial payments to deal with taxes and tax collection”;
3)	“% of unofficial payments to get licenses and permits”;
4)	 “% of unofficial payments when dealing with customs/imports”;
5)	“% of unofficial payments to gain government contracts”; 
6)	“% of unofficial payments when dealing with health/fire inspections”;
7)	“% of unofficial payments to get licenses and permits”;
8)	 “% of unofficial payments to influence the content of new laws/decrees”;
9)	“% of unofficial payments when dealing with courts”;
10)	“% of unofficial payments for other things”.

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# 4.	Corruption type 4

=> for foreign firms that might potentially wish to enter the local regional market

proxy: informal payments and gifts for obtaining the licenses and permits

The First classification question: application to obtain an import license submitted over the last 2 years? (if yes - continue)

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# Questions:

1)	“The average number of days for imported goods to clear customs in the last fiscal year”;

2)	“When you applied for an import license, was an informal gift requested?”;

3)	“Unofficial payments or gifts: to deal with customs or imports”.

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# 5.	Corruption type 5

bribery when facing inspections from officials

The structure of questions: in any of these inspections was a gift or informal (present) requested?

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# 6.	Corruption type 6

variable created to estimate the total corruption atmosphere and intensity in demanding bribes by public officials

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# 6 types <=> 2 main forms of corruption

1) "grease the wheels" = business to run smoother by corruption <- small firms

2) legal harassment = corruption mechanisms are a remedy to beat competitors <- big companies

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# Corruption index revealed from the BEEPS data

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# Corruption index (CI) measurements from the BEEPS data

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# Benefits of the suggested corruption index measured from the BEEPS data

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# Corruption clusters revealed from the BEEPS data

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# Topic 3:

### Regional Corruption Patterns: Russia and Czech Republic

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# Availability of the data on regions of Russia in BEEPS

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# Russian corruption index revealed from the BEEPS data

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# Russian corruption clusters revealed from the BEEPS data

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# The Czech Republic: Percentage of contract paid; revealed from the BEEPS data

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# The regional factors that influence the e-commerce development and campaigns