What drives corruption? Evidence from North African firms

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Periodical article

Title:	What drives corruption? Evidence from North African firms
Author:	Delavallade, Clara
Year:	2012
Periodical:	Journal of African Economies (ISSN 0963-8024)
Volume:	21
Issue:	4
Pages:	499-547
Language:	English
Geographic term:	Maghreb
Subjects:	corruption tax evasion enterprises
External link:	https://jae.oxfordjournals.org/content/21/4/499.full.pdf
Abstract:	This paper empirically analyses the main microeconomic determinants of two forms of corruption supply, administrative corruption and State capture, by Maghrebi firms. The study is based on a new database of nearly 600 Algerian, Moroccan and Tunisian firms. The author shows that tax evasion is a major factor of the engagement of firms in administrative corruption. The latter increases with the share of sales hidden by the firm as long as it is below half of total sales, and slightly decreases thereafter. State capture is fostered by a failing enforcement of property and contract rights. Interestingly, less competitive firms appear to engage more in both forms of corruption than the most dynamic ones. After assessing the robustness of the empirical results, the author draws a comparison of the factors of corruption in North Africa, Uganda and transition countries. App., bibliogr., notes, ref., sum. [Journal abstract]