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The Determinants of Firm Performance and Bribery: Evidence from Manufacturing Firms in Nigeria

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  • Godwin Okafor

Abstract

This paper uses ordinary least squares with firm effects and Probit regression models to investigate the determinants of firm performance and the likelihood of firms to pay bribes. Results for the manufacturing firms in Nigeria show that skilled workforce, exports, foreign ownership and capital investment influence firm performance. Conversely, poor electricity delivery and difficulty obtaining finance impede firm performance. Total sales and time spent dealing with government regulations increase the likelihood of firms to pay bribes. Surprisingly, foreign firms are as much likely to pay bribes as domestic firms. Policy implications from the findings are important considering that the manufacturing sector assumes an important role in the Lewis theory of economic development.

Suggested Citation

  • Godwin Okafor, 2017. "The Determinants of Firm Performance and Bribery: Evidence from Manufacturing Firms in Nigeria," International Economic Journal, Taylor & Francis Journals, vol. 31(4), pages 647-669, October.
    • Handle: RePEc:taf:intecj:v:31:y:2017:i:4:p:647-669
    DOI: 10.1080/10168737.2017.1380678
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    5. Adewuyi, Adeolu & Emmanuel, Zachariah, 2018. "Electricity Outages and Firm Performance Across the Six Geo-Political Zones in Nigeria: The Role of Corruption," MPRA Paper 92091, University Library of Munich, Germany, revised 04 Feb 2019.
    6. Owoo, Nkechi S. & Amankwah, Akuffo & Castaing, Pauline & Palacios-Lopez, Amparo, 2024. "Household Business Performance in Ghana : The Role of Personality Traits and Gender Role Attitudes," Policy Research Working Paper Series 10804, The World Bank.
    7. Ihsen Abid & Salha Ben Salem & Wajdi Frikha, 2024. "Impact of political instability of monetary policy conduct and economic activity recovery: empirical investigation," SN Business & Economics, Springer, vol. 4(12), pages 1-18, December.

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