Who suffers and how much from corruption? Evidence from firm-level data

Andrzej Cieślik and Lukasz Goczek

Eurasian Business Review, 2022, vol. 12, issue 3, No 2, 473 pages

Abstract: Abstract In this article, we study firm-level determinants of corruption using a sample of 164,000 companies from 144 countries for the 2005–2020 period. We analyze two variables related to corruption: the perception of corruption as an obstacle to doing business using an ordinal logit model and actual bribe tax payments using a fractional logit model. Controlling for other factors, both sets of our empirical results show that the extent of corruption is related to the time spent dealing with regulations and inspections. We argue that firms which spend more time dealing with administrative procedures have a greater perception of corruption and are forced to make significantly higher bribe payments. Therefore, in a successful fight against corruption, it is essential to simplify administrative procedures by reducing their number and eliminating direct contacts between firms and officials.

Keywords: Corruption; Firm-level data; Developing countries (search for similar items in EconPapers)
JEL-codes: D02 K42 L14 M48 P37 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s40821-021-00185-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:eurasi:v:12:y:2022:i:3:d:10.1007_s40821-021-00185-x

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40821

DOI: 10.1007/s40821-021-00185-x

Access Statistics for this article

Eurasian Business Review is currently edited by Marco Vivarelli

More articles in Eurasian Business Review from Springer, Eurasia Business and Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().