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Local governance quality and law compliance: The case of Mozambican firms

Author

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  • Hanna Berkel
  • Christian Estmann
  • John Rand

Abstract

Using panel data of manufacturing enterprises in Mozambique between 2012 and 2017, we investigate how changes in perceived quality of governance are related to firms' law compliance. Controlling for firm-level unobserved heterogeneity, we look at three aspects of governance and their components: transparency, security, and infrastructure. We examine which of these have the potential to alter firm compliance behaviour. We find that enterprises' perceptions of transparency are key to law abidance.

Suggested Citation

  • Hanna Berkel & Christian Estmann & John Rand, 2021. "Local governance quality and law compliance: The case of Mozambican firms," WIDER Working Paper Series wp-2021-127, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2021-127
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    Keywords

    Governance; Transparency; Law; Firms; Firm behaviour;
    All these keywords.

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