Seker, Murat
How Bribery Distorts Firm Growth Differences by Firm Attributes / Murat Seker [electronic resource] : Murat Seker - Washington, D.C., The World Bank, 2012 - 1 online resource (42 p.) - Policy research working papers. World Bank e-Library. .
How corruption affects economic performance has been studied for over a decade. Yet the lack of detailed firm-level data has limited research regarding who is carrying the real burden of corruption. This study shows that for firms in the Latin America and Caribbean region, bribery significantly distorts firm growth. Firms that pay bribes when conducting business transactions-such as applying for permits, electricity, or water connections-have 24 percent lower annual sales growth than firms that do not face such solicitations. Moreover, these distortions are more severe for low-revenue-generating and young firms. Using the instrumental variables method, the authors show that these results are robust to different specifications and the use of different sub-samples.
10.1596/1813-9450-6046
Access to Finance
Bribery
Corruption
Corruption & Anticorruption Law
E-Business
Finance and Financial Sector Development
Firm growth
Microfinance
Private Sector Development
Public Sector Corruption & Anticorruption Measures
Latin America and Caribbean Region
How Bribery Distorts Firm Growth Differences by Firm Attributes / Murat Seker [electronic resource] : Murat Seker - Washington, D.C., The World Bank, 2012 - 1 online resource (42 p.) - Policy research working papers. World Bank e-Library. .
How corruption affects economic performance has been studied for over a decade. Yet the lack of detailed firm-level data has limited research regarding who is carrying the real burden of corruption. This study shows that for firms in the Latin America and Caribbean region, bribery significantly distorts firm growth. Firms that pay bribes when conducting business transactions-such as applying for permits, electricity, or water connections-have 24 percent lower annual sales growth than firms that do not face such solicitations. Moreover, these distortions are more severe for low-revenue-generating and young firms. Using the instrumental variables method, the authors show that these results are robust to different specifications and the use of different sub-samples.
10.1596/1813-9450-6046
Access to Finance
Bribery
Corruption
Corruption & Anticorruption Law
E-Business
Finance and Financial Sector Development
Firm growth
Microfinance
Private Sector Development
Public Sector Corruption & Anticorruption Measures
Latin America and Caribbean Region