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Firm-level corruption: Unravelling sand from grease

Author

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  • Axel Demenet
  • Hoang-Anh Ho
  • Sarah Morcillo

Abstract

This paper adds to the recent literature on firm-level corruption by relying on rich data including detailed information on the purpose and amounts of bribe payments among Vietnamese micro, small, and medium firms. Using industry-location averages to instrument for firm-level bribe payments in both a cross-sectional and a panel setting, we provide evidence of a large and significant positive association between corruption and firm performance.

Suggested Citation

  • Axel Demenet & Hoang-Anh Ho & Sarah Morcillo, 2017. "Firm-level corruption: Unravelling sand from grease," WIDER Working Paper Series wp-2017-123, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2017-123
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    References listed on IDEAS

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    Cited by:

    1. Chei Bukari & Emm anuel Atta Anaman, 2021. "Corruption and firm innovation: a grease or sand in the wheels of commerce? Evidence from lower-middle and upper-middle income economies," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(2), pages 267-302, June.
    2. Albert Persaud & Geraint Day & Susham Gupta & Antonio Ventriglio & Roxanna Ruiz & Egor Chumakov & Geetha Desai & Joao Castaldelli-Maia & Julio Torales & Edgardo Juan Tolentino & Kamaldeep Bhui & Dines, 2018. "Geopolitical factors and mental health I," International Journal of Social Psychiatry, , vol. 64(8), pages 778-785, December.

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