Is corruption efficiency-enhancing? A case study of the Central and Eastern European region
We investigate the role of firm-level bribes in explaining the efficiency of within-sector production factor allocation across firms in nine Central and Eastern European (CEE) countries in 2003-2012. We find a positive association between corruption and both labour and capital misallocation dynamics...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Università Carlo Cattaneo LIUC
2018-06-01
|
| Series: | The European Journal of Comparative Economics |
| Subjects: | |
| Online Access: | http://ejce.liuc.it/18242979201801/182429792018150105.pdf |
| _version_ | 1819083276815433728 |
|---|---|
| author | Claire Giordano Paloma Lopez-Garcia |
| author_facet | Claire Giordano Paloma Lopez-Garcia |
| author_sort | Claire Giordano |
| collection | DOAJ |
| description | We investigate the role of firm-level bribes in explaining the efficiency of within-sector production factor allocation across firms in nine Central and Eastern European (CEE) countries in 2003-2012. We find a positive association between corruption and both labour and capital misallocation dynamics, once country framework conditions are controlled for. The link is larger the smaller the country, the lower the degree of political stability and of civil liberties, and the weaker regulatory quality. Results hold when instrumenting corruption with female representation in Parliament and the freedom of the press. Targeted action against corruption in the CEE region would thus enhance within-sector allocative efficiency, in turn a determinant of sectorial, and aggregate, TFP growth. |
| first_indexed | 2024-12-21T20:30:00Z |
| format | Article |
| id | doaj.art-e0d1677500e7463e9ff7e0daf2fc5744 |
| institution | Directory Open Access Journal |
| issn | 1824-2979 |
| language | English |
| last_indexed | 2024-12-21T20:30:00Z |
| publishDate | 2018-06-01 |
| publisher | Università Carlo Cattaneo LIUC |
| record_format | Article |
| series | The European Journal of Comparative Economics |
| spelling | doaj.art-e0d1677500e7463e9ff7e0daf2fc57442022-12-21T18:51:15ZengUniversità Carlo Cattaneo LIUCThe European Journal of Comparative Economics1824-29792018-06-0115111916410.25428/1824-2979/201801-119-164Is corruption efficiency-enhancing? A case study of the Central and Eastern European regionClaire GiordanoPaloma Lopez-GarciaWe investigate the role of firm-level bribes in explaining the efficiency of within-sector production factor allocation across firms in nine Central and Eastern European (CEE) countries in 2003-2012. We find a positive association between corruption and both labour and capital misallocation dynamics, once country framework conditions are controlled for. The link is larger the smaller the country, the lower the degree of political stability and of civil liberties, and the weaker regulatory quality. Results hold when instrumenting corruption with female representation in Parliament and the freedom of the press. Targeted action against corruption in the CEE region would thus enhance within-sector allocative efficiency, in turn a determinant of sectorial, and aggregate, TFP growth.http://ejce.liuc.it/18242979201801/182429792018150105.pdfbribesallocative efficiencycapitallabour |
| spellingShingle | Claire Giordano Paloma Lopez-Garcia Is corruption efficiency-enhancing? A case study of the Central and Eastern European region The European Journal of Comparative Economics bribes allocative efficiency capital labour |
| title | Is corruption efficiency-enhancing? A case study of the Central and Eastern European region |
| title_full | Is corruption efficiency-enhancing? A case study of the Central and Eastern European region |
| title_fullStr | Is corruption efficiency-enhancing? A case study of the Central and Eastern European region |
| title_full_unstemmed | Is corruption efficiency-enhancing? A case study of the Central and Eastern European region |
| title_short | Is corruption efficiency-enhancing? A case study of the Central and Eastern European region |
| title_sort | is corruption efficiency enhancing a case study of the central and eastern european region |
| topic | bribes allocative efficiency capital labour |
| url | http://ejce.liuc.it/18242979201801/182429792018150105.pdf |
| work_keys_str_mv | AT clairegiordano iscorruptionefficiencyenhancingacasestudyofthecentralandeasterneuropeanregion AT palomalopezgarcia iscorruptionefficiencyenhancingacasestudyofthecentralandeasterneuropeanregion |