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Why do North African firms involve in corruption ?

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  • Clara Delavallade

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris 1 - Panthéon-Sorbonne)

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    Abstract

    This paper empirically analyzes the main microeconomic determinants of different forms of corruption supply. Our study is based on a new database of near 600 Algerian, Moroccan and Tunisian firms. We show that the undeclared part of firms' sales is a major factor of their involvement in administrative corruption. The latter increases with the part of the firm's informal activity as far as it is inferior to 55% of total sales, before slightly decreasing. State capture is rather strengthened by a failing enforcement of property and contract rights. Moreover, both forms of corruption help to compensate a loss of competitiveness, which contradicts previous results on this issue. Finally, we draw a comparison of the factors of corruption in North Africa, Uganda and transition countries and derive policy recommendations.

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    File URL: http://halshs.archives-ouvertes.fr/docs/00/14/34/12/PDF/V07002.pdf
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    Bibliographic Info

    Paper provided by HAL in its series Post-Print with number halshs-00143412.

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    Date of creation: Jan 2007
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    Handle: RePEc:hal:journl:halshs-00143412

    Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00143412
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    Related research

    Keywords: Supply of corruption; administrative corruption; state capture; informal activity; competitiveness; North Africa.;

    References

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    1. Svensson, Jakob, 2000. "Who must pay bribes and how much? Evidence from a cross-section of firms," Policy Research Working Paper Series 2486, The World Bank.
    2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    3. Bardhan, Pranab, 2006. "The economist's approach to the problem of corruption," World Development, Elsevier, vol. 34(2), pages 341-348, February.
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    Cited by:
    1. G. d'Agostino & J.P Dunne & L. Pieroni, 2012. "Government spending, corruption and economic growth," SALDRU Working Papers 74, Southern Africa Labour and Development Research Unit, University of Cape Town.

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