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Corruption and Informality: Complements or Substitutes? Qualitative Evidence from Barranquilla, Colombia

Author

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  • Mehling, Maxie-Lina
  • Boehm, Frédéric

Abstract

We present results of a qualitative study based on interviews with informal vendors and experts on informality carried out in Barranquilla, Colombia, in order to investigate whether corruption and informality are complements or substitutes. It was found that it is necessary to distinguish between bureaucratic and political corruption when examining the relation with informality, as the results can be opposite. In Barranquilla, bureaucratic corruption and informality seem to be substitutes, while political corruption and informality complement each other.

Suggested Citation

  • Mehling, Maxie-Lina & Boehm, Frédéric, 2014. "Corruption and Informality: Complements or Substitutes? Qualitative Evidence from Barranquilla, Colombia," MPRA Paper 54817, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:54817
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    File URL: https://mpra.ub.uni-muenchen.de/54817/1/MPRA_paper_54817.pdf
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    References listed on IDEAS

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    1. Simon Johnson & Daniel Kaufman & Andrei Shleifer, 1997. "The Unofficial Economy in Transition," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(2), pages 159-240.
    2. Toke S. Aidt, 2009. "Corruption, institutions, and economic development," Oxford Review of Economic Policy, Oxford University Press, vol. 25(2), pages 271-291, Summer.
    3. Hindriks, Jean & Keen, Michael & Muthoo, Abhinay, 1999. "Corruption, extortion and evasion," Journal of Public Economics, Elsevier, vol. 74(3), pages 395-430, December.
    4. Santa María Mauricio & Sandra Rozo, 2009. "Análisis cualitativo y cuantitativo de la informalidad empresarial en Colombia," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE, September.
    5. Bernal Raquel, 2009. "The Informal Labor Market in Colombia: identification and characterization," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE, September.
    6. Graf Lambsdorff, Johann & Fink, Hady, 2006. "Combating corruption in Colombia: Perceptions and achievements," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-44-06, University of Passau, Faculty of Business and Economics.
    7. Jay Pil Choi & Marcel Thum, 2005. "Corruption And The Shadow Economy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(3), pages 817-836, August.
    8. Lambsdorff,Johann Graf, 2007. "The Institutional Economics of Corruption and Reform," Cambridge Books, Cambridge University Press, number 9780521872751, Fall.
    9. Guillermo E. Perry & William F. Maloney & Omar S. Arias & Pablo Fajnzylber & Andrew D. Mason & Jaime Saavedra-Chanduvi, 2007. "Informality : Exit and Exclusion," World Bank Publications, The World Bank, number 6730, July.
    10. repec:hrv:faseco:30728045 is not listed on IDEAS
    11. Paola Roldán Vásquez & Carlos Ospino Hernández, 2009. "¿Quiénes terminan en la informalidad?: Impacto de las características y el tiempo de búsqueda," REVISTA DE ECONOMÍA DEL CARIBE 007124, UNIVERSIDAD DEL NORTE.
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    Cited by:

    1. Kalle Moene & Tina Søreide, 2015. "Good Governance Facades," CMI Working Papers 2, CMI (Chr. Michelsen Institute), Bergen, Norway.

    More about this item

    Keywords

    Corruption; Informality; Colombia;

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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