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Corruption and Firm Growth: Evidence from around the World.
- Source :
- Economic Journal; May2024, Vol. 134 Issue 660, p1494-1516, 23p
- Publication Year :
- 2024
-
Abstract
- We empirically investigate the relationship between corruption and growth using a firm-level dataset that is unique in scale, covering almost 88,000 firms across 141 economies in 2006–20, with wide-ranging corruption experiences. The scale and detail of our data allow us to explore the corruption-growth relationship at a very local level, within industries in a relatively narrow geography. We report three empirical regularities. First, firms that make zero informal payments tend to grow slower than bribers. Second, this result is driven by non-bribers in high-corruption countries. Third, among bribers, growth is decreasing in the amount of informal payments—in both high- and low-corruption countries. We suggest that this set of results may be reconciled with a simple model in which endogenously determined higher bribe rates lead to lower growth, while non-bribers are often excluded entirely from growth opportunities in high-corruption settings. [ABSTRACT FROM AUTHOR]
- Subjects :
- CORRUPTION
BRIBERY
BUSINESS enterprises
GEOGRAPHY
PAYMENT
Subjects
Details
- Language :
- English
- ISSN :
- 00130133
- Volume :
- 134
- Issue :
- 660
- Database :
- Complementary Index
- Journal :
- Economic Journal
- Publication Type :
- Academic Journal
- Accession number :
- 176847240
- Full Text :
- https://doi.org/10.1093/ej/uead100