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The silence of corruption : identifying underreporting of business corruption through randomized response techniques

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  • Jensen, Nathan M
  • Rahman, Aminur

Abstract

Research on the economic consequences of corruption has been hampered by the inability to directly measure corruption. Using an innovative methodology that allows respondents to report individual experiences with corruption while minimizing self-incrimination and an objective diagnostic to evaluate lying (false responses), this paper explores the extent of business corruption in Bangladesh. The analysis shows that traditional measures of corruption underreport the extent of business corruption in Bangladesh and existing strategies to evaluate and elicit truthful responses have limited effectiveness. The authors identify the types of firms that are associated with false responses and nonresponses to survey questions on corruption.

Suggested Citation

  • Jensen, Nathan M & Rahman, Aminur, 2011. "The silence of corruption : identifying underreporting of business corruption through randomized response techniques," Policy Research Working Paper Series 5696, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5696
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    3. Thorben C. Kundt & Florian Misch & Birger Nerré, 2017. "Re-assessing the merits of measuring tax evasion through business surveys: an application of the crosswise model," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(1), pages 112-133, February.
    4. Clarke, George, 2011. "Lying about firm performance: Evidence from a survey in Nigeria," MPRA Paper 35382, University Library of Munich, Germany.
    5. Friesenbichler, Klaus S. & Selenko, Eva & Clarke, George R.G., 2015. "How much of a nuisance is greasing the palms? A study on job dedication and attitudes towards corruption reports under answer bias control," MPRA Paper 67331, University Library of Munich, Germany.
    6. Clarke, George, 2012. "Do reticent managers lie during firm surveys?," MPRA Paper 37634, University Library of Munich, Germany.
    7. Kim, Sahrok & Praveen Parboteeah, K. & Cullen, John B. & Jeong, Nara, 2022. "Social institutions approach to women’s firm ownership and firm bribery activity: A study of small-sized firms in emerging markets," Journal of Business Research, Elsevier, vol. 144(C), pages 1333-1349.

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