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Estimating how firm characteristics affect corruption using enterprise survey data

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  • George R.G. Clarke

Abstract

The World Bank Enterprise Surveys contain multiple questions pertaining to corruption. One popular question asks how much firms typically pay in bribes. The manager can answer in two ways: as a per cent of sales or in local currency. In principle, the reported amount should not depend upon how the manager chooses to answer. In practice, it does. Those opting to answer as percentages report paying far more than managers opting to answer in local currency in most countries. This article proposes a new method for estimating the discrepancy and other parameters taking this into account. Hypothesis tests consistently favour the modified model over the basic model that does not control for the different reporting methods.

Suggested Citation

  • George R.G. Clarke, 2026. "Estimating how firm characteristics affect corruption using enterprise survey data," Applied Economics, Taylor & Francis Journals, vol. 58(32), pages 6484-6494, July.
    • Handle: RePEc:taf:applec:v:58:y:2026:i:32:p:6484-6494
    DOI: 10.1080/00036846.2025.2521035
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