Firm Registration and Bribes: Results from a Microenterprise Survey in Africa

27 Pages Posted: 27 Jun 2011

See all articles by George R. G. Clarke

George R. G. Clarke

Texas A&M International University - A.R. Sanchez Jr., School of Business

Date Written: 2011

Abstract

If corrupt bureaucrats target registered firms, then corruption may discourage registration. Using data from a survey of 4,801 microenterprises in Zambia, this paper looks at whether corruption is a more or less serious problem for registered firms. The paper finds results consistent with the cross-country evidence, registered firms appear to be more concerned about corruption than unregistered firms. This suggests that remaining informal and out-of-sight might reduce the burden of corruption. The paper also looks at two possible reasons why registered firms might be more concerned about corruption. It finds that there is little evidence that government officials specifically target registered firms. Registered firms were more likely to be involved in transactions with government or parastatal officials that could involve bribes, possibly explaining why they are more concerned about corruption than other firms are, but they were no more likely to pay bribes during these transactions.

Suggested Citation

Clarke, George, Firm Registration and Bribes: Results from a Microenterprise Survey in Africa (2011). Available at SSRN: https://ssrn.com/abstract=1873029 or http://dx.doi.org/10.2139/ssrn.1873029

George Clarke (Contact Author)

Texas A&M International University - A.R. Sanchez Jr., School of Business ( email )

5201 University Blvd.
Laredo, TX 78041-1900
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
51
rank
376,462
Abstract Views
442
PlumX Metrics