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Climate change, corruption, and business bribes in South Asia

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  • Lee, Hanol
  • Moumbark, Toure

Abstract

Firms in many South Asian countries are not only directly affected by natural disasters, but also indirectly affected by natural disaster-induced corruption of public officials. Public officials might have incentives to solicit bribes when natural disasters occur. This study explores the relationship between firms’ perceived corruption and public officials’ bribery behavior by analyzing firm-level data for five South Asian countries from the World Bank Enterprise Survey. The results showed that floods positively associated with corruption. Corruption was positively associated with bribery, and probability of soliciting bribery increased by 18% for each consecutive level of corruption perceived by the firm.

Suggested Citation

  • Lee, Hanol & Moumbark, Toure, 2022. "Climate change, corruption, and business bribes in South Asia," Finance Research Letters, Elsevier, vol. 47(PB).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322000149
    DOI: 10.1016/j.frl.2022.102685
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Climate change; Corruption; Bribery; Informal payment; South Asia;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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