Abstract: We utilize survey data from over 11,000 firms operating in 125 countries and a profit-maximizing cost-benefit framework to study the determinants of procurement bribery. About one-third of firms bribe to secure public contracts, with an average bribe of 7.9% of the contract value....

This paper examines the effects of a watershed anti-corruption initiative – the 1997 OECD Anti-Bribery Convention – on international trade flows. I exploit variation in the timing of implementation by exporters and in the level of corruption of importers to quantify the Convention's effects...