Size Matters: Corruption Perceptions versus Corruption Experiences by Firms

33 Pages Posted: 3 Aug 2021

See all articles by Rajeev K. Goel

Rajeev K. Goel

Illinois State University - Department of Economics

Ummad Mazhar

Shaheed Zulkar Ali Bhutto Institute of Science and Technology

Rati Ram

Illinois State University - Department of Economics

Date Written: 2021

Abstract

This study uses a large firm-level data set covering more than 80 countries to explore the effects of firm-size, city-size, and government-size on perceived and experienced corruption. Four points summarize our main findings, which seem instructive and new. First, there is a broad structural similarity in the major determinants of perceived and experienced corruption. Second, larger firms and larger government size lower corruption perceptions and experience. Third, larger cities raise corruption perceptions and experience. Fourth, when the sample is limited to large cities, the corruption-lowering effect of government size loses significance throughout, while firm size loses significance in experience regressions.

JEL Classification: K420, L250

Suggested Citation

Goel, Rajeev K. and Mazhar, Ummad and Ram, Rati, Size Matters: Corruption Perceptions versus Corruption Experiences by Firms (2021). CESifo Working Paper No. 9221, Available at SSRN: https://ssrn.com/abstract=3898319 or http://dx.doi.org/10.2139/ssrn.3898319

Rajeev K. Goel (Contact Author)

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States

Ummad Mazhar

Shaheed Zulkar Ali Bhutto Institute of Science and Technology ( email )

90 and 100 Clifton
Karachi, ISLAMABAD 75600
Pakistan

Rati Ram

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States
309-438-7101 (Phone)
309-438-5228 (Fax)

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