Corruption and Productivity: Firm-level Evidence

By D. de Rosa, Nishaal Gooroochurn, Holger Görg. 2010

198 citations recorded by the source corpus.

Summary Using enterprise data for the economies of Central and Eastern Europe and the CIS, this study examines the effects of corruption on productivity. Corruption is narrowly defined as the occurrence of informal payments to government officials to ease the day-to-day operation of firms. The effects of this “bribe tax” on productivity are compared to the consequences of red tape, which may be understood as imposing a “time tax” on firms. When testing effects in the full sample, only the bribe tax appears to have a negative impact on firm-level productivity, while the effect of the time tax is insignificant. We also find that the surrounding environment influences the way in which firm behaviour affects firm performance. In particular, in countries where corruption is more prevalent and the legal framework is weaker, bribery is more harmful for firm-level productivity.

Subfields: Economics and Econometrics, Information Systems, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/8371c59a19ae2169ba29fb105ba4415189815780

How researchers see this paper

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In Economics and Econometrics

1. H. Vu
2. Tuan V. Nguyen
3. Steven Lim
4. T. Tran

In Sociology and Political Science

1. H. Vu
2. Tuan V. Nguyen
3. Steven Lim
4. T. Tran

Citations in the corpus

• Corruption, Types of Corruption and Firm Financial Performance: New Evidence from a Transitional Economy (2018, background): “For instance, De Rosa et al. (2010) examined the effect of corruption on firm productivity using a sample of 21 Central and Eastern Europe countries.”