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Corruption and firm behavior: evidence from African ports

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  • Sequeira, Sandra
  • Djankov, Simeon

Abstract

This paper investigates how corruption affects firm behavior. Using an original and unusually rich dataset on bribe payments at ports matched to firm-level data, we observe how firms adapt to different types of corruption by adjusting their transport strategies. Our results suggest that firms respond to the price effects of corruption, organizing production in a way that increases or decreases demand for the public service.

Suggested Citation

  • Sequeira, Sandra & Djankov, Simeon, 2014. "Corruption and firm behavior: evidence from African ports," LSE Research Online Documents on Economics 60833, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:60833
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    More about this item

    Keywords

    corruption; firm behavior; transport; ports; trade costs;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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