Why Do Firms Hide? Bribes and Unofficial Activity after Communism

Simon Johnson, Daniel Kaufmann, John McMillan and Christopher Woodruff

Public Economics from University Library of Munich, Germany

Abstract: Our survey of private manufacturing firms finds the size of hidden ‘unofficial’ activity to be much larger in Russia and Ukraine than in Poland, Slovakia and Romania. A comparison of cross-country averages shows that managers in Russia and Ukraine face higher effective tax rates, worse bureaucratic corruption, greater incidence of mafia protection, and have less faith in the court system. Our firm-level regressions for the three Eastern European countries find that bureaucratic corruption is significantly associated with hiding output. Ó 2000 Elsevier Science S.A. All rights reserved.

JEL-codes: H26 K42 O17 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2003-08-25
New Economics Papers: this item is included in nep-law, nep-mic, nep-pbe and nep-tra
Note: Type of Document - Acrobat PDF; pages: 26 ; figures: included
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/pe/papers/0308/0308004.pdf (application/pdf)

Related works:
Chapter: Why Do Firms Hide? Bribes and Unofficial Activity after Communism (2007)
Journal Article: Why do firms hide? Bribes and unofficial activity after communism (2000)
Working Paper: Why do Firms Hide? Bribes and Unofficial Activity After Communism (1999)
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:wpa:wuwppe:0308004

Access Statistics for this paper

More papers in Public Economics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA (volker.schallehn@ub.uni-muenchen.de this e-mail address is bad, please contact repec@repec.org).