Corruption and firm behavior: Evidence from African ports

Sandra Sequeira and Simeon Djankov

Journal of International Economics, 2014, vol. 94, issue 2, 277-294

Abstract: This paper investigates how corruption affects firm behavior. Using an original and unusually rich dataset on bribe payments at ports matched to firm-level data, we observe how firms adapt to different types of corruption by adjusting their transport strategies. Our results suggest that firms respond to the price effects of corruption, organizing production in a way that increases or decreases demand for the public service.

Keywords: Corruption; Firm behavior; Transport; Ports; Trade costs (search for similar items in EconPapers)
JEL-codes: D22 D73 L91 O12 R41 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (92)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:94:y:2014:i:2:p:277-294

DOI: 10.1016/j.jinteco.2014.08.010

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