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Is corruption distasteful or just another cost of doing business?

Public choice, 2022, Vol.190 (1-2), p.33-51 [Peer Reviewed Journal]

The Author(s) 2021 ;The Author(s) 2021. This work is published under http://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License. ;ISSN: 0048-5829 ;EISSN: 1573-7101 ;DOI: 10.1007/s11127-021-00913-x

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  • Title:
    Is corruption distasteful or just another cost of doing business?
  • Author: Banerjee, Ritwik ; Boly, Amadou ; Gillanders, Robert
  • Subjects: Corruption ; Costs ; Economics ; Economics and Finance ; Expectations ; Investments ; Political Science ; Public Finance
  • Is Part Of: Public choice, 2022, Vol.190 (1-2), p.33-51
  • Description: Using data from a lab experiment carried out in Kenya, we show that while “legitimate” costs and costs imposed by corruption both deter investment, the latter is no more of a disincentive than the former. We interpret the evidence as consistent with the conclusion that our participants viewed corruption as just another cost of doing business. We also experimented with giving participants in some treatments information about the corruption expectations of participants in previous sessions and the actual extent of corruption in previous sessions. We find some evidence that the objective information actually increased investment without changing the participants’ own expectations regarding corruption. That result is compatible with the idea that revealing the level of corruption changes the descriptive norm and facilitates investment in a corrupt environment.
  • Publisher: New York: Springer US
  • Language: English
  • Identifier: ISSN: 0048-5829
    EISSN: 1573-7101
    DOI: 10.1007/s11127-021-00913-x
  • Source: Springer OA刊
    ProQuest Central
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