Corruption and Firm Growth: Evidence from around the World

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
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
More

Export and Share


Download

Full text not available from this repository.

Statistics

Altmetrics
View details on Dimensions' website

Downloads from LBS Research Online

View details

Actions (login required)

Edit Item Edit Item