Assessing the Effects of Corruption and Crime on Firm Performance: Evidence from Latin America

Alejandro Gaviria

No 1902, Investigación Económica en Colombia from Fundación Pondo

Abstract: This paper uses a survey of private firms to assess the effects of corruption on the economic prospects of firms. The paper studies whether corruption and crime affect sales, investment and employment growth at the firm level, and whether bribes and illegal payments by firms reduce bureaucratic interference. The paper finds that corruption and crime substantially reduce sales growth, and that the reported levels of corruption and bureaucratic interferences are positively correlated at the firm level. Overall, the results of the paper suggest that corruption and crime substantially reduce firm competitiveness and that corruption is unlikely to have any positive effects.

Pages: 36
Date: 2002-02-28
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Citations: View citations in EconPapers (108)

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http://www.webpondo.org/files/opinion_jul_sep_2002/corrup4.pdf

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Journal Article: Assessing the effects of corruption and crime on firm performance: evidence from Latin America (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000100:001902

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