Corruption, Manufacturing Plant Growth, and the Asian Paradox: Indonesian Evidence
Virginie Vial () and
Julien Hanoteau ()
World Development, 2010, vol. 38, issue 5, pages 693-705
Summary Using panel data from the Indonesian manufacturing industry during the Suharto era (1975-95), we assess the impact of plant-level corruption on output and productivity growth. In support of the "grease the wheels" hypothesis and the view of an Asian paradox, we find that corruption, measured as bribes and indirect tax payments, has a positive and statistically significant effect on individual plant growth. This effect persists over the entire period, which suggests improvements in the efficacy of the bribe system and a strengthening of the long-term contract between firms and the government.
Keywords: corruption; taxation; plant; growth; and; productivity; Asia; Indonesia (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (30) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:eee:wdevel:v:38:y:2010:i:5:p:693-705
Access Statistics for this article
World Development is currently edited by O. T. Coomes
More articles in World Development from Elsevier
Series data maintained by Dana Niculescu ().