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Corruption in the informal sector: evidence from West Africa

Author

Listed:
  • Emmanuelle Lavallée

    () (DIAL, LEDa, IRD, Université Paris-Dauphine, Université PSL)

  • François Roubaud

    () (IRD, UMR DIAL, PSL, Université Paris-Dauphine)

Abstract

(english) Using an unique dataset, this paper analyses the causes and impacts of bribery in the informal sector in West Africa. It investigates the determinants of the incidence of bribery and the magnitude of the bribes actually paid. Our results show that the mechanisms at play are no different than those found for the formal sector by other authors. With respect to the impacts of corruption on a firm’s performance, our findings show that experience of corruption increases business performance, but that this effect is driven by just one category of informal firm: constrained gazelles._________________________________ (français) Cet article analyse à partir de données originales les causes et les conséquences de la corruption dans le secteur informel en Afrique de l’Ouest. Il étudie les déterminants et l’ampleur des pots-de-vin payés. Les résultats montrent que les mécanismes en jeu dans l’informel ne sont pas différents de ceux prévalant dans le secteur formel. En ce qui concerne l’impact de la corruption sur les performances des entreprises, cet article met en évidence que la corruption augmente les performances des entreprises, mais que ce résultat est dû à une seule catégorie d’entreprises informelles : les « constrained gazelles ».

Suggested Citation

  • Emmanuelle Lavallée & François Roubaud, 2018. "Corruption in the informal sector: evidence from West Africa," Working Papers DT/2018/07, DIAL (Développement, Institutions et Mondialisation).
  • Handle: RePEc:dia:wpaper:dt201807
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    References listed on IDEAS

    as
    1. Razafindrakoto, Mireille & Roubaud, François, 2010. "Are International Databases on Corruption Reliable? A Comparison of Expert Opinion Surveys and Household Surveys in Sub-Saharan Africa," World Development, Elsevier, vol. 38(8), pages 1057-1069, August.
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    3. Jakob Svensson, 2003. "Who Must Pay Bribes and How Much? Evidence from a Cross Section of Firms," The Quarterly Journal of Economics, Oxford University Press, vol. 118(1), pages 207-230.
    4. Grimm, Michael & Knorringa, Peter & Lay, Jann, 2012. "Constrained Gazelles: High Potentials in West Africa’s Informal Economy," World Development, Elsevier, vol. 40(7), pages 1352-1368.
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    More about this item

    Keywords

    Corruption; informal sector; firm performance; entrepreneurship; West Africa.;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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