Bribes, market power and access to credit: evidence from cross-country firm-level data

Le Thanh Ha (), Dao Hanh Le () and Nguyen Ngoc Mai ()
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Le Thanh Ha: National Economics University
Dao Hanh Le: National Economics University
Nguyen Ngoc Mai: National Economics University

International Review of Economics, 2021, vol. 68, issue 4, No 5, 527-550

Abstract: Abstract This paper used multi-country firm-level data covering 104 countries for the period from 2010 to 2019 to investigate the effects of bribery on credit access for firms holding bargaining power and/or facing market competition. We used firms’ size and legal status to capture their bargaining power, while the levels of market competition were analyzed according to the number of competitors in the same working field. Our empirical results provided evidence to support the “greasing-the-wheels-of-credit access” hypothesis. Furthermore, the effects of bribery become stronger for larger-sized or formally registered firms, and those facing no market competition. These effects also become pronounced if we controlled the endogeneity problem.

Keywords: Bribery; Credit access; Bargaining power; Market competition (search for similar items in EconPapers)
JEL-codes: L24 O30 O32 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s12232-021-00381-1

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