EconPapers    
Economics at your fingertips  
 

Corruption, firm growth and export propensity in Kenya

Peter Kimuyu

International Journal of Social Economics, 2007, vol. 34, issue 3, 197-217

Abstract: Purpose - This paper draws from research that sought to explore the structure of corruption in Kenya and its implications on the performance of firms. Design/methodology/approach - The research takes the form of descriptive and econometrics analyses of Investment Climate Assessment data sets. Findings - Kenyan manufacturers spent significant proportions of their annual sales on unofficial payments including kick-backs on government contracts. There is also evidence of co-movement between such unofficial payments and red-tape, suggesting that corruption does not play any greasing function. Not only does corruption undermine firm growth but also reduces the propensity to export. The findings uphold others that demonstrate the deleterious consequences of corruption. Research limitations/implications - Further work is needed in tidying up the methods of collecting corruption data. Although a battery of strategies was used to reduce potential response biases common in corruption data, the information leans towards perceptions so that the findings remain tentative. Practical implications - The results should be of interest to policy makers and researchers and should put the fight against corruption on a firmer footing. Originality/value - The paper establishes that corruption undermines the performance of firms.

Keywords: Corruption; Kenya; Business performance (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.emeraldinsight.com/10.1108/030682907107 ... 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:ijsepp:v:34:y:2007:i:3:p:197-217

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

Access Statistics for this article

International Journal of Social Economics is currently edited by Dr Colin Tyler and James Connelly

More articles in International Journal of Social Economics from Emerald Group Publishing
Bibliographic data for series maintained by Virginia Chapman ().

 
Page updated 2018-05-12
Handle: RePEc:eme:ijsepp:v:34:y:2007:i:3:p:197-217