Economics at your fingertips  

How Middle-men can Undermine Anti-corruption Reforms

Kjetil Bjorvatn, Gaute Torsvik and Bertil Tungodden ()

No WP 2005: 1, CMI Working Papers from CMI (Chr. Michelsen Institute), Bergen, Norway

Abstract: The anti-corruption reform in the Tanzanian tax bureaucracy in the mid-1990s was apparently a short-lived success. In the wake of the reform, a number of "tax experts" established themselves in the market, many of them being laid off tax bureaucrats. We argue that middle-men can undermine the effect of an anti-corruption reform by reducing the uncertainty that firms face vis-à-vis a reformed tax bureaucracy, which in turn may encourage firms to pay bribes rather than taxes. Indeed, under some circumstances, middle-men can cause corruption to be higher after the reform than before the reform. Since the demand for middle-men may increase with the extent of the reform, we also demonstrate that a small reform may be more efficient in combatting corruption than a more radical reform.

Keywords: Corruption; Reform; Middle-men; Institutions; Tanzania (search for similar items in EconPapers)
JEL-codes: H26 K42 O12 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2005
New Economics Papers: this item is included in nep-pbe and nep-reg
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link) ... -anti-corruption.pdf (application/pdf)

Related works:
Working Paper: How middle-men can undermine anti-corruption reforms (2004) Downloads
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:

Access Statistics for this paper

More papers in CMI Working Papers from CMI (Chr. Michelsen Institute), Bergen, Norway Contact information at EDIRC.
Bibliographic data for series maintained by Robert Sjursen ().

Page updated 2023-01-31
Handle: RePEc:chm:wpaper:wp2005-1