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What Drives Corruption? Evidence from North African Firms


  • Clara Delavallade


This paper empirically analyzes the main microeconomic determinants of two forms of corruption supply, administrative corruption and state capture, by Maghrebi firms. This study is based on a new database of nearly 600 Algerian, Moroccan and Tunisian firms. I show that tax evasion is a major factor in the engagement of firms in administrative corruption. The latter increases with the share of sales hidden by the firm as long as it is below half of total sales, and slightly decreases thereafter. State capture is fostered by a failing enforcement of property and contract rights. Interestingly, less competitive firms appear to engage more in both forms of corruption than the most dynamic ones. After assessing the robustness of my empirical results, I draw a comparison of the factors of corruption in North Africa, Uganda and transition countries.

Suggested Citation

  • Clara Delavallade, 2011. "What Drives Corruption? Evidence from North African Firms," Working Papers 244, Economic Research Southern Africa.
  • Handle: RePEc:rza:wpaper:244

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    References listed on IDEAS

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    Cited by:

    1. Pieroni, Luca & d'Agostino, Giorgio & Bartolucci, Francesco, 2013. "Identifying corruption through latent class models: evidence from transition economies," MPRA Paper 43981, University Library of Munich, Germany.
    2. Tomson Ogwang & Danny Cho, 2014. "A Conceptual Framework for Constructing a Corruption Diffusion Index," Journal of Business Ethics, Springer, vol. 125(1), pages 1-9, November.
    3. Colin C. Williams & Abbi M. Kedir, 2016. "The Impacts Of Corruption On Firm Performance: Some Lessons From 40 African Countries," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 1-18, December.
    4. d'Agostino, G. & Dunne, J.P. & Pieroni, L., 2016. "Corruption and growth in Africa," European Journal of Political Economy, Elsevier, vol. 43(C), pages 71-88.

    More about this item


    Supply of Corruption; Administrative Corruption; State Capture; Tax Evasion; Competitiveness; North Africa;

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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