Corruption and Microenterprises in Russia

Safavian, Mehnaz S.; Graham, Douglas H.; González-Vega, Claudio

doi:10.1016/s0305-750x(01)00036-5

Cited by 84 publications

(46 citation statements)

References 23 publications

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“…Similarly, if a manager says corruption is a problem, studies often assume that is because that firm pays bribes more frequently. Safavian, Graham andGonzalez-Vega (2001, p. 1220) Anecdotal evidence on whether managers answer this way is mixed. Johnson, McMillan, and Woodruff (2002, p. 1337-1338 report one respondent told an interviewer that he understood that the question was really asking about his own firm.…”

Section: Asking Firms About Corruptionmentioning

confidence: 99%

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What Do Managers Mean When They Say ‘Firms Like Theirs’ Pay Bribes?

Clarke¹

2012

IJEF

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It is difficult to get firm managers to answer questions on corruption honestly. Because of this, most surveys ask about corruption indirectly-asking whether corruption is a problem or whether 'firms like this one' pay bribes. Most studies interpret managers' responses to indirect questions as if they were answering about their own behavior. This might not be the case, however. This paper uses data from a survey of construction contractors in Afghanistan to look at how managers respond to indirect questions. We show that firms that are averse to paying bribes to win government contracts, and so do not bid for them, are more likely to say that firms like theirs pay bribes at other times. If managers answer the general indirect questions on corruption thinking about their own actions, we would expect that firms that are averse to paying bribes to win contracts would also be averse to paying bribes at other times. One explanation for the counterintuitive result is that firms answer the indirect questions as asked-about what they believe other firms are doing. This has important implications for studies that use indirect questions to assess what types of firms pay bribes.

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Section: Asking Firms About Corruptionmentioning

confidence: 99%

“…The final variable measures time spent dealing with government regulations. This is included because the burden of regulation might affect corruption (Djankov, La Porta Lopez-de-Silanes, & Shleifer, 2002;Safavian et al, 2001). …”

Section: Wwwccsenetorg/ijefmentioning

confidence: 99%

What Do Managers Mean When They Say ‘Firms Like Theirs’ Pay Bribes?

Clarke¹

2012

IJEF

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“…Without regulation advanced economies like the UK simply could not function effectively. Consider the difficult transition to a market economy in Russia since the early-1990s where the rule of law and private property rights were not deeply institutionalized (Safavian et al 2001). Regulation can be defined as: the legal and administrative rules created, applied and enforced by state institutions -at local, national and supra-national level -that both mandate and prohibit actions by individuals and organisations, with infringements subject to criminal, civil and administrative penalties.…”

Section: Conceptualising Regulationmentioning

confidence: 99%

A Burden on Business? Reviewing the Evidence Base on Regulation and Small-Business Performance

Kitching

2006

Environ Plann C Gov Policy

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Abstract:The evidence base regarding the impact of regulation on small business performance is reviewed. The substantive findings of various studies and their methodological approaches are critiqued. Many studies suffer from inadequate conceptualisation of 'regulation' and methodological shortcomings, and fail to investigate the causal mechanisms through which regulation contributes to business performance outcomes. In some cases, they positively encourage superficial and misleading results. More sophisticated approaches, using qualitative data, demonstrate that regulations generate a variety of consequences and should not be conceptualised solely in terms of costs and constraints. Rather, regulation can impact upon small businesses directly and indirectly, and both constrain and enable and motivate business owners to act. The impact of regulation is contingent upon business owners' adaptations to particular interventions within the broader social contexts within which they operate. The implications for policymakers are discussed.1

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“…As a result, low levels of the country quality of financial institutions may yield a reverse causation of the estimated relationship. Safavian et al (2001), investigating data from small businesses in Russia, reports that the enterprises more harried by corruption also apply more often for external finance.…”

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confidence: 99%

Corruption and the effects of economic freedom

Pieroni

d’Agostino

2013

European Journal of Political Economy

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The predictions that economic freedom is beneficial in reducing corruption have not been found to be universally robust in empirical studies. The present work reviews this relationship by using firms' data in a cross-country survey and argues that approaches using aggregated macro data have not been able to explain it appropriately. We model cross-country variations of the microfounded economic freedom-corruption relationship using multilevel models. Additionally, we analyze this relationship by disentangling the determinants for several components of economic freedom because not all areas affect corruption equally. The results show that the extent of the macro-effects on the measures of (micro)economic freedom for corruption, identified by the degree of economic development of a country, can explain why a lack of competition policies and government regulations may yield more corruption. Estimations for Africa and transition economy subsamples confirm our conjectures.JEL : H10; H11; H50; K20; O5

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Corruption and Microenterprises in Russia

Cited by 84 publications

References 23 publications

What Do Managers Mean When They Say ‘Firms Like Theirs’ Pay Bribes?

What Do Managers Mean When They Say ‘Firms Like Theirs’ Pay Bribes?

A Burden on Business? Reviewing the Evidence Base on Regulation and Small-Business Performance

Corruption and the effects of economic freedom

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