Bribing behaviour by firm attributes: an empirical analysis

Corruption is one of the most important determinants of economic efficiency and growth. However, empirical research on the causes of corruption is still very limited. In this paper, we investigate the effect of various firm characteristics on their bribing behaviour. Using extensive data on 25,969 firms from 114 countries, we find that firms bribe less if they are in the textile and garments, food, wholesale and retail industries and have been in business for a longer period of time. Firms that belong to the IT sector, have won government contracts, are subject to a higher bureaucracy burden, more inspections, more informal competition, and higher tax rates tend to bribe more.