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Corruption and Firm Export Performance in Fragile Economies: Evidence from Zimbabwe

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  • Makochekanwa, Albert

Abstract

In this paper, we examine the relationship between corruption and firm export performance in Zimbabwe. Using a new panel data set of manufacturing and service firms from World Bank Enterprise survey and a methodology that relies on within-firm variation, we show that corruption increases the probability of exporting indirectly through intermediaries and decreases the probability of exporting directly. This result highlight that corruption is a cost to the economy in the absence of intermediaries. In addition, it highlights the importance of strong institutions that reduce corruption for business dynamism and economic growth.

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  • Makochekanwa, Albert, 2021. "Corruption and Firm Export Performance in Fragile Economies: Evidence from Zimbabwe," Working Papers 7537db0b-da22-4f2b-bac5-5, African Economic Research Consortium.
    • Handle: RePEc:aer:wpaper:7537db0b-da22-4f2b-bac5-572791b8944d
    Note: African Economic Research Consortium
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