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Private sector bribery and effectiveness of anti-corruption policies

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  • Rajeev K. Goel
  • Jelena Budak
  • Edo Rajh

Abstract

This article examines the determinants of private-sector bribes, focusing on the relative effectiveness of anti-corruption policies. Using survey data on Croatian firms, results show that, of the different anti-corruption policies (including internal and external policies), firms' internal code of ethics proved to be an effective deterrent. Firms might also be engaging in corruption among themselves to strategically counter perceived bureaucratic power. In other findings, male employees were more likely to engage in private-sector bribery, while firms located in the capital were less likely to do so. Policy implications are discussed.

Suggested Citation

  • Rajeev K. Goel & Jelena Budak & Edo Rajh, 2015. "Private sector bribery and effectiveness of anti-corruption policies," Applied Economics Letters, Taylor & Francis Journals, vol. 22(10), pages 759-766, July.
    • Handle: RePEc:taf:apeclt:v:22:y:2015:i:10:p:759-766
    DOI: 10.1080/13504851.2014.975326
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    References listed on IDEAS

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    5. Jelena Budak & Edo Rajh, 2011. "Corruption as an Obstacle for Doing Business in the Western Balkans: A Business Sector Perspective," Working Papers 1104, The Institute of Economics, Zagreb.
    6. Rajeev K Goel & Jelena Budak & Edo Rajh, 2013. "Bureaucratic Monopoly and the Nature and Timing of Bribes: Evidence from Croatian Data," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 55(1), pages 43-58, March.
    7. Rajeev K. Goel, 2013. "Initiation of corrupt exchanges and severity of corruption," Financial Theory and Practice, Institute of Public Finance, vol. 37(2), pages 207-222.
    8. Rajeev Goel & Michael Nelson, 2011. "Measures of corruption and determinants of US corruption," Economics of Governance, Springer, vol. 12(2), pages 155-176, June.
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    Cited by:

    1. Suzuki, Taku & Mizobata, Satoshi, 2019. "Social Confusion and Corruption: Investigating the Causes and Effects of a Breakdown of Ethics," Discussion Paper Series 690_v2, Institute of Economic Research, Hitotsubashi University.
    2. Rajeev K. Goel & James W. Saunoris, 2020. "Market exit of firms: Does corruption act as grease or sand?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(8), pages 1539-1548, December.
    3. Alfano, Vincenzo & Capasso, Salvatore & Ercolano, Salvatore & Goel, Rajeev K., 2022. "Death takes no bribes: Impact of perceived corruption on the effectiveness of non-pharmaceutical interventions at combating COVID-19," Social Science & Medicine, Elsevier, vol. 301(C).
    4. Andrea Cardoni & Evgeniia Kiseleva & Simona Arduini & Simone Terzani, 2024. "From sustainable value to shareholder value: The impact of sustainable governance and anti‐corruption programs on market valuation," Business Strategy and the Environment, Wiley Blackwell, vol. 33(1), pages 19-42, January.
    5. Sebastian I. Burduja & Rodica Milena Zaharia, 2019. "Romanian Business Leaders’ Perceptions of Business-to-Business Corruption: Leading More Responsible Businesses?," Sustainability, MDPI, vol. 11(20), pages 1-27, October.
    6. Ullah, Barkat & Wei, Zuobao & Zhu, Yicheng, 2023. "Can a signal mitigate a dilemma? Quality management standards, corruption, and business ethics," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 701-716.
    7. Michael A. Sartor & Paul W. Beamish, 2020. "Private Sector Corruption, Public Sector Corruption and the Organizational Structure of Foreign Subsidiaries," Journal of Business Ethics, Springer, vol. 167(4), pages 725-744, December.
    8. Goel, Rajeev K. & Nelson, Michael A. & Goel, Viraat Y., 2021. "COVID-19 vaccine rollout—scale and speed carry different implications for corruption," Journal of Policy Modeling, Elsevier, vol. 43(3), pages 503-520.

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