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Who bribes in public contracting and why: worldwide evidence from firms

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  • Anna D’Souza

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  • Daniel Kaufmann

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Abstract

We study procurement bribery utilizing survey data from 11,000 enterprises in 125 countries. About one-third of managers report that firms like theirs bribe to secure a public contract, paying about 8 % of the contract value. Econometric estimations suggest that national governance factors, such as democratic accountability, press freedom, and rule of law, are associated with lower bribery. Larger and foreign-owned firms are less likely to bribe than smaller domestic ones. But among bribers, foreign and domestic firms pay similar amounts. Multinational firms appear sensitive to reputational risks in their home countries, but partially adapt to their host country environments. Copyright Springer-Verlag Berlin Heidelberg (outside the USA) 2013

Suggested Citation

  • Anna D’Souza & Daniel Kaufmann, 2013. "Who bribes in public contracting and why: worldwide evidence from firms," Economics of Governance, Springer, vol. 14(4), pages 333-367, November.
  • Handle: RePEc:spr:ecogov:v:14:y:2013:i:4:p:333-367
    DOI: 10.1007/s10101-013-0130-5
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    References listed on IDEAS

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    Cited by:

    1. Jan Hanousek & Anastasiya Shamshur & Jiri Tresl, 2017. "Firm Efficiency, Foreign Ownership and CEO Gender in Corrupt Environments," CERGE-EI Working Papers wp595, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

    More about this item

    Keywords

    Governance; Corruption; Bribery; Public contracting; Public procurement; K42; L1; H11; P48;

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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