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Brief

Is it worth it: Does corruption influence firm productivity?

VoxEU.org, 30 August 2010

Authors

  • Gooroochurn
  • N.
  • Görg
  • H.

Publication Date

JEL Classification

P37 O14

Key Words

bribe tax

corruption

firm performance

productivity

Produktivität

Does it pay to be corrupt? This column presents evidence from 22 emerging economies in Europe and the former Soviet Union on the effects of corruption on firm productivity. It finds that in a highly corrupt country, bribing officials actually has a negative effect on productivity, whereas in countries with strong institutions, it can open doors that competitors dare not touch.

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  • Prof. Holger Görg, Ph.D.
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