Corruption and firm behavior: Evidence from African ports |
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Authors: | Sandra Sequeira Simeon Djankov |
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Affiliation: | 1. LSE, United Kingdom;2. World Bank, United States |
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Abstract: | This paper investigates how corruption affects firm behavior. Using an original and unusually rich dataset on bribe payments at ports matched to firm-level data, we observe how firms adapt to different types of corruption by adjusting their transport strategies. Our results suggest that firms respond to the price effects of corruption, organizing production in a way that increases or decreases demand for the public service. |
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Keywords: | Corruption Firm behavior Transport Ports Trade costs |
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