Fisman, R, Guriev, SG, Ioramashvili, C and Plekhanov, A (2024) Corruption and Firm Growth: Evidence from around the World. Economic Journal, 134 (660). pp. 1494-1516. ISSN 0013-0133
Abstract
We empirically investigate the relationship between corruption and growth using a firm-level dataset that is unique in scale, covering almost 88,000 firms across 141 economies in 2006–20, with wide-ranging corruption experiences. The scale and detail of our data allow us to explore the corruption-growth relationship at a very local level, within industries in a relatively narrow geography. We report three empirical regularities. First, firms that make zero informal payments tend to grow slower than bribers. Second, this result is driven by non-bribers in high-corruption countries. Third, among bribers, growth is decreasing in the amount of informal payments—in both high- and low-corruption countries. We suggest that this set of results may be reconciled with a simple model in which endogenously determined higher bribe rates lead to lower growth, while non-bribers are often excluded entirely from growth opportunities in high-corruption settings.
More Details
Item Type: | Article |
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Subject Areas: | Economics |
Date Deposited: | 08 Oct 2024 08:12 |
Last Modified: | 05 Dec 2024 02:45 |
URI: | https://lbsresearch.london.edu/id/eprint/3868 |