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Corruption for sales

Mathieu Couttenier () and Farid Toubal

Journal of Comparative Economics, 2017, vol. 45, issue 1, 56-66

Abstract: This paper investigates the impact of corruption on foreign affiliates’ sales of German multinationals that differ in their level of experience in the foreign market. We exploit the panel dimension of a detailed firm-level dataset to show that more experienced firms are less likely to suffer from the costs related to corruption. Controlling for persistent and unobserved factors at the country and firm levels, we show that corruption reduces unambiguously the sales of new entering firms, while having no impact on the sales of incumbents.

Keywords: Multinational firms; Corruption; FDI (search for similar items in EconPapers)
JEL-codes: F44 F23 (search for similar items in EconPapers)
Date: 2017
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