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Determinants of Bribery: Theory and Evidence from Sub-Saharan Africa

Author

Listed:
  • Riccardo Pelizzo
  • Eduardo Araral
  • Anton Pak
  • Wu Xun

Abstract

type="main" xml:lang="en"> The paper investigates the determinants of bribery in sub-Saharan Africa by using probit models and data from the World Bank's Enterprise Survey of 10,457 firms in 30 countries in sub-Saharan Africa from 2009 to 2013. By doing so we find that securing a government contract is the most significant motivation for bribery and that overall, the propensity to bribe depends on the size of the firm as well as the predictability of the regulatory environment. Our findings have similarities and differences compared to Asian firms. The paper also highlights that the incidence and the determinants of bribery vary across the four sub-regions. On the basis of this evidence we suggest that when it comes to anti-corruption strategies, one size does not fit all and that country-specific and region-specific strategies should be adopted to address context-specific needs and conditions.

Suggested Citation

  • Riccardo Pelizzo & Eduardo Araral & Anton Pak & Wu Xun, 2016. "Determinants of Bribery: Theory and Evidence from Sub-Saharan Africa," African Development Review, African Development Bank, vol. 28(2), pages 229-240, June.
    • Handle: RePEc:bla:afrdev:v:28:y:2016:i:2:p:229-240
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    Cited by:

    1. J. Muzurura, 2019. "Foreign Direct Investment in Zimbabwe: The Role of Uncertainty, Exports, Cost of Capital, Corruption and Market Size," The Economics and Finance Letters, Conscientia Beam, vol. 6(1), pages 9-24.
    2. Gislain Stéphane Gandjon Fankem, 2017. "La corruption huile ou est-elle un grain de sable dans les rouages du commerce? Test empirique à partir des échanges intra-CEMAC," African Development Review, African Development Bank, vol. 29(3), pages 485-497, September.
    3. Simplice A. Asongu & Nicholas M. Odhiambo, 2021. "Governance and renewable energy consumption in sub-Saharan Africa," Working Papers 21/030, European Xtramile Centre of African Studies (EXCAS).
    4. Simplice A. Asongu & Samba Diop & Amsalu K. Addis, 2023. "Governance, Inequality and Inclusive Education in Sub-Saharan Africa," Forum for Social Economics, Taylor & Francis Journals, vol. 52(1), pages 43-68, January.
    5. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Governance, capital flight and industrialisation in Africa," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-22, December.
    6. Asongu, Simplice & Uduji, Joseph & Okolo-Obasi, Elda, 2020. "Drivers and persistence of death in conflicts: global evidence," MPRA Paper 107240, University Library of Munich, Germany.
    7. Simplice A. Asongu, 2019. "FDI in Selected Developing Countries: Evidence from Bundling and Unbundling Governance," Working Papers 19/057, European Xtramile Centre of African Studies (EXCAS).
    8. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Finance, governance and inclusive education in Sub-Saharan Africa," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 17(8), pages 1044-1061, July.
    9. Asongu, Simplice A & Odhiambo, Nicholas M, 2019. "Governance,CO2 emissions and inclusive human development in Sub-Saharan Africa," Working Papers 25253, University of South Africa, Department of Economics.
    10. Asongu, Simplice & Uduji, Joseph & Okolo-Obasi, Elda, 2020. "Political instability and political terror: global evidence on persistence," MPRA Paper 103147, University Library of Munich, Germany.
    11. Simplice A. Asongu & Joseph Nnanna, 2019. "Foreign aid, instability and governance in Africa," Research Africa Network Working Papers 19/022, Research Africa Network (RAN).
    12. Simplice A. Asongu & Samba Diop, 2022. "Bribing to escape poverty in Africa," Working Papers of the African Governance and Development Institute. 22/090, African Governance and Development Institute..
    13. Chei Bukari & Emm anuel Atta Anaman, 2021. "Corruption and firm innovation: a grease or sand in the wheels of commerce? Evidence from lower-middle and upper-middle income economies," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(2), pages 267-302, June.
    14. Simplice Asongu & Joseph Nnanna & Paul Acha-Anyi, 2019. "Information technology, governance and insurance in Sub-Saharan Africa," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 16(8), pages 1253-1273, September.
    15. Abel Kinyondo & Riccardo Pelizzo, 2018. "Growth, Employment, Poverty and Inequality in Tanzania," Research Africa Network Working Papers 18/001, Research Africa Network (RAN).
    16. Changwatchai, Piyaphan & Dheera-aumpon, Siwapong, 2023. "Culture and bribe giving: Evidence from firm-level data," Research in International Business and Finance, Elsevier, vol. 64(C).
    17. Vu Thi Hong Nhung & Nguyen Thi Hong Huong, 2022. "Overview of bribery giving behaviors: Determinants and influence on firm performance," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 12(1), pages 84-91.
    18. Joanna Próchniak & Renata Płoska & Anna Zamojska & Błażej Lepczyński & Giuseppe T. Cirella, 2023. "Maturity Analysis of Stock Exchanges in Africa: Prepandemic Sustainability Perspective," Sustainability, MDPI, vol. 15(8), pages 1-18, April.
    19. Liedong, Tahiru Azaaviele & Aghanya, Daniel & Jimenez, Alfredo & Rajwani, Tazeeb, 2023. "Corporate political activity and bribery in Africa: Do internet penetration and foreign ownership matter?," Journal of Business Research, Elsevier, vol. 154(C).

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