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Corruption in the informal sector: evidence from West Africa

Author

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  • Emmanuelle Lavallée

    (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

  • François Roubaud

    (DIAL - Développement, institutions et analyses de long terme, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

Abstract

Using an unique dataset, this paper analyses the causes and impacts of bribery in the informal sector in West Africa. It investigates the determinants of the incidence of bribery and the magnitude of the bribes actually paid. Our results show that the mechanisms at play are no different than those found for the formal sector by other authors. With respect to the impacts of corruption on a firm's performance, our findings show that experience of corruption increases business performance, but that this effect is driven by just one category of informal firm: constrained gazelles.

Suggested Citation

  • Emmanuelle Lavallée & François Roubaud, 2023. "Corruption in the informal sector: evidence from West Africa," Working Papers hal-04233040, HAL.
    • Handle: RePEc:hal:wpaper:hal-04233040
    Note: View the original document on HAL open archive server: https://hal.science/hal-04233040
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    References listed on IDEAS

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    Cited by:

    1. Sam Z. Njinyah & Simplice A. Asongu, 2023. "Unregistered Firms, Financial Access and Innovation," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(2), pages 307-346, July.
    2. Sam Njinyah & Simplice A. Asongu, 2022. "The relationship between firms that start operating as unregistered and firms’ innovation: the moderating effect of access to finance," Working Papers 22/099, European Xtramile Centre of African Studies (EXCAS).
    3. Li, Guangzi & Chan, Kam C., 2021. "Anti-corruption intensity and loan contracting: Evidence from non-state owned firms in China," Emerging Markets Review, Elsevier, vol. 49(C).
    4. Sami Bensassi & Joachim Jarreau, 2019. "Price discrimination in bribe payments: Evidence from informal cross-border trade in West Africa," Post-Print hal-02390008, HAL.
    5. Damien Girollet, 2024. "Digital divides among microenterprises: Evidence from sub‐Saharan Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(2), pages 1350-1380, March.
    6. Jean-Philippe Berrou & Damien Girollet, 2019. "A la recherche des « gazelles » du secteur informel urbain africain. Entreprises et entrepreneurs à fort potentiel dans leur environnement socioéconomique et numérique," Working Papers hal-02507441, HAL.
    7. Bensassi, Sami & Jarreau, Joachim, 2019. "Price discrimination in bribe payments: Evidence from informal cross-border trade in West Africa," World Development, Elsevier, vol. 122(C), pages 462-480.
    8. Charles Ackah & Holger Goerg & Aoife Hanley & Cecília Hornok, 2020. "Why are Africa’s female entrepreneurs not playing the export game? Evidence from Ghana," Discussion Papers 2020-19, University of Nottingham, GEP.
    9. Ackah, Charles Godfred & Görg, Holger & Hanley, Aoife & Hornok, Cecília, 2020. "Why are Africa's female entrepreneurs not playing the export game? Evidence from Ghana," KCG Working Papers 22, Kiel Centre for Globalization (KCG).
    10. Do, Tien Kim Thi & Van Vu, Huong, 2021. "Does formalization increase firm investment in human capital? New evidence from Vietnam," Finance Research Letters, Elsevier, vol. 42(C).
    11. Uchenna EFOBI & Xuan VINH VO & Emmanuel ORKOH, 2022. "Are there wages from “sin”? Working conditions spillover from paying bribe in Vietnam," Small Business Economics, Springer, vol. 58(4), pages 1975-1995, April.
    12. Ologbenla Patrick, 2020. "Institutional Quality. Human Capital and Industrial Sector Growth in Ecowas," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 65(3), pages 1-13, December.

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    More about this item

    Keywords

    Corruption; Informal sector; Firm performance; Entrepreneurship; West Africa;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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