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Regional Differences in Perceived Corruption among Ukrainian Firms

  • Denisova-Schmidt, Elena

    ()

  • Huber, Martin

    ()

This paper investigates regional differences in the perception of corruption and informal practices among Ukrainian firms. Using two different data sets from Ukraine we show that perceived corruption differs significantly across regions, even when taking into account the size, industry, workforce composition, and other characteristics of the firms based on propensity score matching. In particular, perceived corruption is highest in the eastern areas and lowest in the western region, which points to distinct business practices that may be rooted in the different political, cultural, and historical development of Ukrainian regions.

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File URL: http://www1.vwa.unisg.ch/RePEc/usg/econwp/EWP-1407.pdf
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Paper provided by University of St. Gallen, School of Economics and Political Science in its series Economics Working Paper Series with number 1407.

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Length: 33 pages
Date of creation: Apr 2014
Date of revision:
Handle: RePEc:usg:econwp:2014:07
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  1. Fisman, Raymond & Svensson, Jakob, 2007. "Are corruption and taxation really harmful to growth? Firm level evidence," Journal of Development Economics, Elsevier, vol. 83(1), pages 63-75, May.
  2. Rafael La Porta & Florencio Lopez-De-Silanes & Andrei Shleifer, 1999. "Corporate Ownership Around the World," Journal of Finance, American Finance Association, vol. 54(2), pages 471-517, 04.
  3. Roberto Martin N. Galang, 2012. "Victim or Victimizer: Firm Responses to Government Corruption," Journal of Management Studies, Wiley Blackwell, vol. 49(2), pages 429-462, 03.
  4. Huber, Martin & Lechner, Michael & Wunsch, Conny, 2013. "The performance of estimators based on the propensity score," Journal of Econometrics, Elsevier, vol. 175(1), pages 1-21.
  5. Huber, Martin & Lechner, Michael & Steinmayr, Andreas, 2012. "Radius matching on the propensity score with bias adjustment: finite sample behaviour, tuning parameters and software implementation," Economics Working Paper Series 1226, University of St. Gallen, School of Economics and Political Science.
  6. Constant, Amelie & Kahanec, Martin & Zimmermann, Klaus F, 2007. "The Russian-Ukrainian Political Divide," CEPR Discussion Papers 6085, C.E.P.R. Discussion Papers.
  7. Peter Rodgers & Colin C. Williams & John Round, 2008. "Workplace crime and the informal economy in Ukraine: Employee and employer perspectives," International Journal of Social Economics, Emerald Group Publishing, vol. 35(9), pages 666-678, September.
  8. Becker, Sascha O; Boeckh, Katrin; Hainz, Christa; Woessmann, Ludger, 2011. "The Empire Is Dead, Long Live the Empire! Long-Run Persistence of Trust and Corruption in the Bureaucracy," CAGE Online Working Paper Series 40, Competitive Advantage in the Global Economy (CAGE).
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