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Are new states more corrupt? Expert opinions vs. firms’ experiences

Author

Listed:
  • Tamanna Adhikari
  • Michael Breen
  • Robert Gillanders

Abstract

We find that new states are perceived to be more corrupt even though businesses do not report more bribery in newer states. This is suggestive of an unearned, and likely high, reputational cost to being a new state. These findings hold over a number of specifications that include additional economic, historical, and geographic controls.

Suggested Citation

  • Tamanna Adhikari & Michael Breen & Robert Gillanders, 2017. "Are new states more corrupt? Expert opinions vs. firms’ experiences," Working Papers 201720, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:201720
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    File URL: http://hdl.handle.net/10197/9094
    File Function: First version, 2017
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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