Corrupt Environment, Marketization Level and Growth of Five-star Hotel Industry

Abstract

Under the situation of frequent corruption behaviors of government officials and strict requests on cracking down on corruption, using the panel data of provincial five-star hotels, this paper investigates the existence and continuity of development model of “Corruption Economy” in five-star hotel industry, and detects the way for sustainable development of five-star hotel industry on the background of anti-corruption from the perspective of marketization. The results show that degree of state corruption represented by Control of Corruption has a positive effect on the growth of five-star hotel industry. Anti-corruption policies in litigation system, the efforts of implementing these policies to combat corruption, and public’s perceived corruption and anti-corruption all verify a negative impact on five-star hotel industry. Practice shows that anti-corruption breaks the false prosperity of “corruption economy” model. Only with a perfect market system as well as fair market competition order, the five-star hotel industry can realize a sustainable growth.