What Drives Corruption? Evidence from North African Firms
AbstractThis paper empirically analyzes the main microeconomic determinants of two forms of corruption supply, administrative corruption and state capture, by Maghrebi firms. This study is based on a new database of nearly 600 Algerian, Moroccan and Tunisian firms. I show that tax evasion is a major factor in the engagement of firms in administrative corruption. The latter increases with the share of sales hidden by the firm as long as it is below half of total sales, and slightly decreases thereafter. State capture is fostered by a failing enforcement of property and contract rights. Interestingly, less competitive firms appear to engage more in both forms of corruption than the most dynamic ones. After assessing the robustness of my empirical results, I draw a comparison of the factors of corruption in North Africa, Uganda and transition countries.
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Bibliographic InfoPaper provided by Economic Research Southern Africa in its series Working Papers with number 244.
Length: 43 pages
Date of creation: 2011
Date of revision:
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More information through EDIRC
Supply of Corruption; Administrative Corruption; State Capture; Tax Evasion; Competitiveness; North Africa;
Other versions of this item:
- Clara Delavallade, 2012. "What Drives Corruption? Evidence from North African Firms," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 21(4), pages 499-547, August.
- Clara Delavallade, 2011. "What Drives Corruption? Evidence from North African Firms," SALDRU Working Papers 68, Southern Africa Labour and Development Research Unit, University of Cape Town.
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-09 (All new papers)
- NEP-ARA-2011-10-09 (MENA - Middle East & North Africa)
- NEP-DEV-2011-10-09 (Development)
- NEP-IUE-2011-10-09 (Informal & Underground Economics)
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