EconPapers    
Economics at your fingertips  
 

Bribery in subsidized credit markets: evidence from Bangladesh

Emmanuel Dechenaux, Aaron Lowen () and Andrew Samuel

Indian Growth and Development Review, 2014, vol. 7, issue 1, 61-72

Abstract: Purpose - – The aim of this paper is to study the role of bribery in subsidized credit markets in developing countries. First, the authors use the data to test whether more productive borrowers will pay larger or smaller bribes since the theoretical literature offers conflicting findings regarding the relationship between the size of the bribe and the productivity of borrowers. Second, the authors test whether being eligible to borrow from a microfinance institution affects the frequency or the magnitude of the bribe paid when borrowing from a (non-microfinance) subsidized bank. Design/methodology/approach - – The empirical analysis is based on existing theoretical models of bribery. The data set uses publicly available survey data from the Bangladesh Institute for Development Studies. The primary linear model is estimated using OLS. Because left-censoring affects the data, the authors also estimate a Tobit model. Finally, to correct for potential selection bias, the authors also estimate a Heckman selection model. Findings - – The authors find that more productive borrowers pay lower bribes than less productive borrowers and that being MFI-eligible affects the frequency of bribery, but not the magnitude of the bribe. Originality/value - – To the authors' knowledge, the paper is the first empirical study of bribery in subsidized credit markets.

Keywords: Microfinance; Corruption; Bribery; Red tape; Subsidized credit (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.emeraldinsight.com/10.1108/IGDR-11-2011 ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:igdrpp:v:7:y:2014:i:1:p:61-72

Ordering information: This journal article can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://www.emeraldinsight.com/igdr.htm

Access Statistics for this article

Indian Growth and Development Review is currently edited by Professor Prabal Roy Chowdhury and Professor Chetan Ghate

More articles in Indian Growth and Development Review from Emerald Group Publishing
Bibliographic data for series maintained by Virginia Chapman ().

 
Page updated 2020-11-12
Handle: RePEc:eme:igdrpp:v:7:y:2014:i:1:p:61-72