IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Measuring governance and state capture: the role of bureaucrats and firms in shaping the business environment

  • Joel S. Hellman

    (European Bank for Reconstruction and Development)

  • Geraint Jones

    (European Bank for Reconstruction and Development and World Bank)

  • Daniel Kaufmann

    (World Bank)

  • Mark Schankerman

    (European Bank for Reconstruction and Development and LSE)

Recent studies have focused on the characteristics and policies of the state to explain the extent and causes of corruption, with little attention paid to the role played by firms. Consequently, the links between corporate governance and national governance have been unexplored. This paper summarises the results of the Business Environment and Enterprise Performance Survey (BEEPS) across 20 transition economies, providing an assessment of governance and corruption from the perspective of firms. The BEEPS is part of the global World Business Environment Survey being carried out by the World Bank. The survey design permits an in-depth empirical analysis of governance and corruption, unbundling governance into its component dimensions. This allows a more detailed quantitative assessment of corruption, a more nuanced understanding of the causes of the problem and as a result a stronger foundation for policy advice. Particular attention is paid to "state capture" by parts of the corporate sector (i.e. the propensity of firms to shape the underlying "rules of the game" including "purchase" of legislation and court decisions). The survey also provides measures of other dimensions of "grand corruption" such as that related to public procurement. Typically, crosscountry surveys suffer from a potential bias if firms have a tendency to systematically over- or underestimate the extent of problems in their own country. We implement a simple method for evaluating the extent of this "country perception bias" and find little evidence pointing to such bias in the BEEPS.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by European Bank for Reconstruction and Development, Office of the Chief Economist in its series Working Papers with number 51.

in new window

Length: 51 pages
Date of creation: Jun 2000
Date of revision:
Handle: RePEc:ebd:wpaper:51
Contact details of provider: Postal: One Exchange Square, London EC2A 2JN
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ebd:wpaper:51. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Olga Lucas)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.