Does Greater Regulatory Burden Lead to More Corruption? Evidence Using Firm-Level Survey Data for Developing Countries

Author(s):  
Mohammad Amin ◽  
Yew Chong Soh

Abstract It is sometimes thought that regulation often creates opportunities for public officials to extract bribes. If this is true, deregulation offers a simple way of combating corruption. However, empirical evidence on the corruption and regulation nexus is limited. Further, the corruption indices used are based on experts’ opinions, which may suffer from perception bias. The present paper attempts to address these shortcomings using firm-level survey data for 131 mostly developing countries on the actual experience of the firms with bribery and regulatory burden. The study examines the level of overall corruption and petty corruption. Exploiting variation in regulatory burden, both within-country and industry-level, a large positive effect of regulatory burden on corruption is found. For the baseline results, the bribery rate is higher by about 0.03 percentage points for each percentage point increase in the regulatory burden. The finding is robust to several controls and endogeneity checks.

2022 ◽  
Author(s):  
Juan S. Blyde ◽  
Mayra A. Ramírez

Empirical analyses that rely on micro-level panel data have found that exporters are generally less pollutant than non-exporters. While alternative explanations have been proposed, firm level data has not been used to examine the role of destination markets behind the relationship between exports and pollution. In this paper we argue that because consumers in high-income countries have higher valuations for clean environments than consumers in developing countries, exporters targeting high-income countries are more likely to improve their environmental outcomes than exporters targeting destinations where valuations for the environment are not high. Using a panel of firm-level data from Chile we find support to this hypothesis. A 10 percentage point increase in the share of exports to high-income countries is associated with a reduction in CO2 pollution intensity of about 16%. The results have important implications for firms in developing countries aiming to target high-income markets.


Author(s):  
Bich Le Thi Ngoc

The aim of this study is to analyze empirically the impact of taxation and corruption on the growth of manufacturing firms in Vietnam. The study employed pooled OLS estimation and then instrument variables with fixed effect for the panel data of 1377 firms in Vietnam from 2005 to 2011. These data were obtained from the survey of the Central Institute for Economic Management and the Danish International Development Agency. The results show that both taxation and corruption are negatively associated with firm growth measured by firm sales adjusted according to the GDP deflator. A one-percentage point increase in the bribery rate is linked with a reduction of 16,883 percentage points in firm revenue, over four and a half times bigger than the effect of a one-percentage point increase in the tax rate. From the findings of this research, the author recommends the Vietnam government to lessen taxation on firms and that there should be an urgent revolution in anti-corruption policies as well as bureaucratic improvement in Vietnam.


2020 ◽  
Vol 5 (11) ◽  
pp. e003390
Author(s):  
Nolan M Kavanagh ◽  
Elisabeth M Schaffer ◽  
Alex Ndyabakira ◽  
Kara Marson ◽  
Diane V Havlir ◽  
...  

IntroductionInterventions informed by behavioural economics, such as planning prompts, have the potential to increase HIV testing at minimal or no cost. Planning prompts have not been previously evaluated for HIV testing uptake. We conducted a randomised clinical trial to evaluate the effectiveness of low-cost planning prompts to promote HIV testing among men.MethodsWe randomised adult men in rural Ugandan parishes to receive a calendar planning prompt that gave them the opportunity to make a plan to get tested for HIV at health campaigns held in their communities. Participants received either a calendar showing the dates when the community health campaign would be held (control group) or a calendar showing the dates and prompting them to select a date and time when they planned to attend (planning prompt group). Participants were not required to select a date and time or to share their selection with study staff. The primary outcome was HIV testing uptake at the community health campaign.ResultsAmong 2362 participants, 1796 (76%) participants tested for HIV. Men who received a planning prompt were 2.2 percentage points more likely to test than the control group, although the difference was not statistically significant (77.1% vs 74.9%; 95% CI –1.2 to 5.7 percentage points, p=0.20). The planning prompt was more effective among men enrolled ≤40 days before the campaigns (3.6 percentage-point increase in testing; 95% CI –2.9 to 10.1, p=0.27) than among men enrolled >40 days before the campaigns (1.8 percentage-point increase; 95% CI –2.3 to 5.8, p=0.39), although the effects within the subgroups were not significant.ConclusionThese findings suggest that planning prompts may be an effective behavioural intervention to promote HIV testing at minimal or no cost. Large-scale studies should further assess the impact and cost-effectiveness of such interventions.


2020 ◽  
Vol 110 ◽  
pp. 250-254
Author(s):  
Rembrand Koning ◽  
Sampsa Samila ◽  
John-Paul Ferguson

We study whether increasing the share of female inventors leads to more biomedical inventions that focus on the needs of women. After accounting for detailed disease-technology, disease-year, and technology-year fixed effects, we find that a 10 percentage point increase in the share of female inventors in a research area yields 1.2 percentage points more female-focused patents. Notably, this effect only holds for female-led invention teams. Areas with a greater share of female inventors in supporting roles do not produce more female-focused inventions. For gender to impact the direction of invention, it appears that women must occupy positions of power.


2018 ◽  
Vol 19 (3) ◽  
pp. 184-200
Author(s):  
Anne-Laure Le Nadant ◽  
Frédéric Perdreau

Using Community Innovation Survey data from France, we provide an empirical analysis of the innovative efforts of a sample of manufacturing firms that underwent a leveraged buyout. We find no evidence that LBOs have a negative effect on firm level of innovation expenditure. In contrast, results suggest that buyouts have a positive effect on incremental innovation and that private equity firms help to make innovation spending more effective and even more efficient. It could be that private equity firms help the company to focus on its core innovative capabilities and bring innovative products to the market without increasing innovation spending.


Author(s):  
Jungmin Lee

Abstract This paper examines whether viewers of the popular television show, American Idol, exhibit racial preferences. We find evidence on same-race preferences among black viewers only: when there are more black contestants in the show, more black viewers are tuned in to watch it. The result is robust after we account for the endogeneity problem regarding the contestants' racial composition, which arises due to the voting mechanism. Our point estimates tell that a 10 percentage point increase in the proportion of black contestants increases viewership ratings for black households by about 1.3 percentage points.


2015 ◽  
Vol 7 (1) ◽  
pp. 1-35 ◽  
Author(s):  
Rüdiger Bachmann ◽  
Tim O. Berg ◽  
Eric R. Sims

There have been suggestions for monetary policy to engineer higher inflation expectations to stimulate spending. We examine the relationship between expected inflation and spending attitudes using the microdata from the Michigan Survey of Consumers. The impact of higher inflation expectations on the reported readiness to spend on durables is generally small, outside the zero lower bound, often statistically insignificant, and inside of it typically significantly negative. In our baseline specification, a one percentage point increase in expected inflation during the recent zero lower bound period reduces households' probability of having a positive attitude towards spending by about 0.5 percentage points. (JEL D12, D84, E21, E31, E52)


Author(s):  
Jonathan Jay ◽  
Jacob Bor ◽  
Elaine Nsoesie ◽  
Sarah Ketchen Lipson ◽  
David K. Jones ◽  
...  

AbstractIntroductionAlthough physical distancing has been the primary strategy to reduce the spread of COVID-19 in the U.S., people’s ability to distance may vary by socioeconomic characteristics, leading to higher transmission risk in low-income neighborhoods.MethodsWe used mobility data from a large, anonymized sample of smartphone users to assess the relationship between neighborhood median household income and physical distancing during the COVID-19 epidemic. We assessed changes in several behaviors including: spending the day entirely at home; working outside the home; and visits to supermarkets, parks, hospitals, and other locations. We also assessed differences in effects of state policies on physical distancing across neighborhood income levels.ResultsWe found a strong gradient between neighborhood income and physical distancing. Compared to January and February 2020, the proportion of individuals spending the day entirely at home in April 2020 increased by 10.9 percentage points in low-income neighborhoods and by 27.1 percentage points in high-income neighborhoods. During April 2020, people in low-income neighborhoods were more likely to work outside the home, compared to people in higher-income neighborhoods, but not more likely to visit non-work locations. State physical distancing orders were associated with a 1.5 percentage-point increase (95% CI [0.9, 2.1], p < 0.001) in staying home in low-income neighborhoods and a 2.4 percentage point increase (95% CI [1.4, 3.4], p < 0.001) in high-income neighborhoods.DiscussionPeople in lower-income neighborhoods have faced barriers to physical distancing, particularly the need to work outside the home. State physical distancing policies have not mitigated these disparities.


Author(s):  
German Caruso ◽  
Christian Gomez Canon ◽  
Valerie Mueller

Abstract In the wake of the Venezuelan crisis, Colombian migrants are returning to their place of birth. Since 2016, however, there has been a spike of immigration to Colombia attributable to inflows of the Venezuelan-born. Using high-frequency administrative data, we estimate the impacts of the recent labour supply shock–driven by the economic predicament in Venezuela–on the labour and poverty outcomes of native Colombians. We employ an instrumental variables approach to account for the selection of immigrants into locations with more or less desirable conditions. A 1 percentage point increase in immigration from Venezuela reduces informal sector wages by 10 percentage points in urban areas. As the crisis increased the fraction of migrants by 0.2 percentage points in 2017, we estimate urban wages decreased by a total of 2 percentage points. A dual-pronged approach is warranted to promote the economic assimilation of Venezuelans while protecting the job security of Colombians.


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