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Corruption in the informal sector: evidence from West Africa

Emmanuelle Lavallée () and Francois Roubaud ()
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Emmanuelle Lavallée: DIAL, LEDa, IRD, Université Paris-Dauphine, Université PSL

No DT/2018/07, Working Papers from DIAL (Développement, Institutions et Mondialisation)

Abstract: (english) Using an unique dataset, this paper analyses the causes and impacts of bribery in the informal sector in West Africa. It investigates the determinants of the incidence of bribery and the magnitude of the bribes actually paid. Our results show that the mechanisms at play are no different than those found for the formal sector by other authors. With respect to the impacts of corruption on a firm’s performance, our findings show that experience of corruption increases business performance, but that this effect is driven by just one category of informal firm: constrained gazelles._________________________________ (français) Cet article analyse à partir de données originales les causes et les conséquences de la corruption dans le secteur informel en Afrique de l’Ouest. Il étudie les déterminants et l’ampleur des pots-de-vin payés. Les résultats montrent que les mécanismes en jeu dans l’informel ne sont pas différents de ceux prévalant dans le secteur formel. En ce qui concerne l’impact de la corruption sur les performances des entreprises, cet article met en évidence que la corruption augmente les performances des entreprises, mais que ce résultat est dû à une seule catégorie d’entreprises informelles : les « constrained gazelles ».

Keywords: Corruption; informal sector; firm performance; entrepreneurship; West Africa. (search for similar items in EconPapers)
JEL-codes: D73 O12 D22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-iue
Date: 2018-04
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Related works:
Journal Article: Corruption in the Informal Sector: Evidence from West Africa (2019) Downloads
Working Paper: Corruption in the Informal Sector: Evidence from West Africa (2018)
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