Strategic location of firms: Does it empower bribe givers or bribe takers?
•Data on the corruption experience of firms located in different cities in more than one hundred countries hint that location might influence corruption.•We distinguish among firms located in a nation’s (i) capital city; (ii) main business city; and (iii) large city.•Firms in big cities face greater...
Gespeichert in:
Veröffentlicht in: | Economic systems 2021-09, Vol.45 (3), p.100873, Article 100873 |
---|---|
Hauptverfasser: | , , |
Format: | Artikel |
Sprache: | eng |
Schlagworte: | |
Online-Zugang: | Volltext |
Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
Zusammenfassung: | •Data on the corruption experience of firms located in different cities in more than one hundred countries hint that location might influence corruption.•We distinguish among firms located in a nation’s (i) capital city; (ii) main business city; and (iii) large city.•Firms in big cities face greater corruption experience and higher corruption intensity.•In main business cities, service sector firms face lower corruption, while manufacturing sector firms face greater corruption.•Corruption in capital cities is lower, especially in the service sector.
This paper uses survey data on the corruption experience (rather than corruption perceptions) of firms located in different types of cities in more than one hundred countries to analyze the impact of firms’ strategic location on corruption. In a corrupt economy, location might influence the ability of bureaucrats/politicians and firms to extract and dodge rents. Placing the analysis in the literature on determinants of corruption, our results reveal that the corruption experiences of firms located in nations’ capital cities are qualitatively different from firms located elsewhere: they do not experience greater corruption, while firms in large cities and main business cities do. However, when manufacturing and service firms are considered separately, their corruption experience and perceptions differ. |
---|---|
ISSN: | 0939-3625 1878-5433 |
DOI: | 10.1016/j.ecosys.2021.100873 |