Corruption and the Local Business Environment: Insights from SMEs in 29 Philippine Cities

31 Pages Posted: 23 May 2013

See all articles by Ronald U. Mendoza

Ronald U. Mendoza

Ateneo De Manila University - Ateneo School of Government

Joel Bancolita

De La Salle University

Date Written: June 1, 2013

Abstract

This paper contributes to the international evidence on the possible factors linked to corruption using data on over 1,700 small and medium scale enterprises (SMEs) in 29 Philippine Cities covered by the 2009 Asian Institute of Management (AIM) Enterprise Survey. The results suggest that corruption appears to be linked to conditions that affect Philippine SMEs in a very pernicious way — more corruption is reported by firms located in cities with very poor business environments and weak provision of public goods. For instance, bribery reported among those who obtained their business permits 30 days late is 1.23 times compared to those that receive their permits on the same day.

Keywords: corruption, bribery, business permits, small and medium scale enterprises

JEL Classification: D20, H41, O12, O43, P48

Suggested Citation

Mendoza, Ronald U. and Bancolita, Joel, Corruption and the Local Business Environment: Insights from SMEs in 29 Philippine Cities (June 1, 2013). Available at SSRN: https://ssrn.com/abstract=2268922 or http://dx.doi.org/10.2139/ssrn.2268922

Ronald U. Mendoza (Contact Author)

Ateneo De Manila University - Ateneo School of Government ( email )

Katipunan Road
Loyola Heights
Quezon City, 1108
Philippines

Joel Bancolita

De La Salle University ( email )

2401 Taft Avenue
Manila, Metro Manila 1004
Philippines

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