Journal
ECONOMIC JOURNAL
Volume 129, Issue 618, Pages 651-677Publisher
OXFORD UNIV PRESS
DOI: 10.1111/ecoj.12560
Keywords
-
Categories
Funding
- National Science Foundation
Ask authors/readers for more resources
This article tests whether firm growth reduces corruption, using data from over 10,000 Vietnamese firms. We employ instrumental variables based on growth in a firm's industry in other provinces within Vietnam and in China. We find that firm growth reduces bribes as a share of revenues. We propose a mechanism for this effect whereby government officials' decisions about bribes are modulated by inter-jurisdictional competition. This mechanism also implies that growth reduces bribery more for more mobile firms; consistent with this prediction, we find a larger effect for firms with transferable rights to their land or operations in multiple provinces.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available