 Is bribery a conscious, strategic and rational choice? Impact on firms’ growth in IndiaPrabin Chauhan Chhetri and Rajesh Raj S.N. Journal of Policy Modeling, 2024, vol. 46, issue 5, 1000-1019 Abstract: This study, utilising data from the World Bank Enterprise Survey, probes the diverse effects of bribery on the growth of firms in India. The central question we ask is: what motivates certain firms to engage in bribery while others abstain? Employing the endogenous switching regression model, we aim to uncover the intricacies of this heterogeneity. Our findings suggest that bribery can facilitate growth, yet there is substantial heterogeneity in its impact on firms. The impact varies across firm groups: it positively influences those engaging in bribery, while non-bribers would have experienced adverse effects if they had engaged in bribery. Thus, we observe that firms’ decision to dis(engage) in bribery is influenced by the returns they derive from such a decision. This suggests that firms’ decision to (dis)engage in bribery is a conscious, strategic and rational one, driven by choice rather than coercion. Keywords: Manufacturing firms; Bribery; Firm growth; Endogenous switching regression (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:46:y:2024:i:5:p:1000-1019 DOI: 10.1016/j.jpolmod.2024.06.001 Access Statistics for this article Journal of Policy Modeling is currently edited by A. M. Costa More articles in Journal of Policy Modeling from Elsevier |
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