Poverty Reduction and Economic Structure: Comparative Path Analysis for Mozambique and Vietnam
Publikation: Working paper › Forskning
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Poverty Reduction and Economic Structure : Comparative Path Analysis for Mozambique and Vietnam . / Arndt, Thomas Channing; Garcia, Andres ; Tarp, Finn; Thurlow, James .
Helsinki : UNU-WIDER, 2010.Publikation: Working paper › Forskning
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TY - UNPB
T1 - Poverty Reduction and Economic Structure
T2 - Comparative Path Analysis for Mozambique and Vietnam
AU - Arndt, Thomas Channing
AU - Garcia, Andres
AU - Tarp, Finn
AU - Thurlow, James
N1 - JEL classification: O10, O58, C69
PY - 2010
Y1 - 2010
N2 - This paper uses a unique panel dataset on firm-level corruption. It contains quantitative information on bribe payments by a sample of formal and informal Vietnamese firms. We show that bribe incidence is highly associated with firm-level differences in (i) visibility, (ii) sunk costs, (iii) ability to pay, and (iv) level of interaction with public officials. Moreover, when informal firms become formal the probability of paying bribes increases. Becoming formal is also associated with a revenue growth premium that is not driven by self-selection of well-performing firms. On average, this premium outweighs the additional bribe cost of formalization. Formalization embodies net benefits in spite of the growth hampering effects of bribes.
AB - This paper uses a unique panel dataset on firm-level corruption. It contains quantitative information on bribe payments by a sample of formal and informal Vietnamese firms. We show that bribe incidence is highly associated with firm-level differences in (i) visibility, (ii) sunk costs, (iii) ability to pay, and (iv) level of interaction with public officials. Moreover, when informal firms become formal the probability of paying bribes increases. Becoming formal is also associated with a revenue growth premium that is not driven by self-selection of well-performing firms. On average, this premium outweighs the additional bribe cost of formalization. Formalization embodies net benefits in spite of the growth hampering effects of bribes.
KW - Faculty of Social Sciences
KW - firm performance
KW - corruption
KW - Vietnam
M3 - Working paper
BT - Poverty Reduction and Economic Structure
PB - UNU-WIDER
CY - Helsinki
ER -
ID: 33626942