Corruption and business dynamics in Morocco: Evidence from the World Bank Enterprise Survey

Chaimae Krichi, Mariem Liouaeddine, Ayoub Saadi and Zakaria Mansouri

Journal of the International Council for Small Business, 2026, vol. 7, issue 2, 543-558

Abstract: This study investigates the multifaceted impact of corruption on domestic sales and export performance of Moroccan firms. It aims to understand how corruption, in various forms, affects business operations and international trade. Using data from the World Bank Enterprise Survey, which includes 554 Moroccan companies, we employed propensity score matching to analyze the effects of corruption, specifically measured through bribe payments. Our findings indicate that corruption has a dual impact on firm performance. Bribe payments were associated with a significant increase in domestic sales. However, these corrupt practices impose additional costs that detract from export performance. These results highlight the complex role of corruption in business operations. Although it may offer short-term advantages in domestic markets, it also poses substantial barriers to international trade. These insights suggest a critical need for enhanced anticorruption measures and improved financial access to support the export activities of small and medium-sized enterprises.

Date: 2026
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DOI: 10.1080/26437015.2025.2513967

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