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.
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Length: 36 Date of creation: 28 Feb 2002 Date of revision: Handle: RePEc:col:000100:001902
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Shleifer, Andrei & Vishny, Robert W, 1993.
"Corruption,"
The Quarterly Journal of Economics,
MIT Press, vol. 108(3), pages 599-617, August.
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Andrei Shleifer & Robert W. Vishny, 1993.
"Corruption,"
NBER Working Papers
4372, National Bureau of Economic Research, Inc.
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