1. FIRM GROWTH AND CORRUPTION: EMPIRICAL EVIDENCE FROM VIETNAM.
- Author
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Bai, Jie, Jayachandran, Seema, Malesky, Edmund J., and Olken, Benjamin A.
- Subjects
CORRUPTION ,ORGANIZATIONAL growth ,ECONOMIC competition ,PUBLIC officers - Abstract
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. [ABSTRACT FROM AUTHOR]
- Published
- 2019
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