Corruption and Country Size: Evidence Using Firm-Level Survey Data

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Measurement and determinants of corruption across Indian states

“…In low-income states with a dense population, the supply of public services is scarcer than demand, and individuals may value services differently, creating a potential for corrupt practices (Fisman and Gatti, 2002). Amin and Soh (2019), using firm-level survey data from 135 countries, note that the level of corruption experienced by firms increases with country size (measured in terms of population) because, in highly dense environments, the cost of administration increases and bureaucracies may become inefficient, implying an overall reduction in institutional quality and increasing opportunity for corrupt behaviour. This demonstrates that the population control bill can also help tackle public corruption.…”

The impact of corruption on companies' engagement in sustainability reporting practices: an empirical examination

“…Greater fairness, honesty, and accountability may be the only way to break the link between corruption and distrust of the state. Levels of corruption vary across countries, with some countries plagued with more corruption than others (Donadelli et al, 2014;Amin and Soh, 2019). The broader literature recognises that, when it comes to corruption, there are disadvantages to being a country located in the developing regions of Africa, Asia, Latin America, and the Middle East (Hope, 2017).…”