An Economic Analysis of Rent Seeking in Government Procurement

Rentseeking and the corruption problem in the government procurement is well known, but there is still little research on its forming mechanism in the present literature. The paper makes a systematic analysis the forming process in the process of dispersed government procurement, its effects on economy and the society only from a pure economic angel. We have found through the research that rentseeking problem can't be resolved by the noneconomic means only ( such as system, law, education, etc.); it could only be solved by the combined efforts of economic and the noneconomic means.