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

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

Regulation often creates opportunities for public officials to extract bribes. If this is true, deregulation offers a simple way to combat corruption. However, empirical evidence on the corruption and regulation nexus is limited. Further, the corru...

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Bibliographic Details
Main Authors: Amin, Mohammad, Soh, Yew Chong
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
CORRUPTION
REGULATION
BRIBERY
Online Access:http://documents.worldbank.org/curated/en/296861582037503905/Does-Greater-Regulatory-Burden-Lead-to-More-Corruption-Evidence-Using-Firm-Level-Survey-Data-for-Developing-Countries
http://hdl.handle.net/10986/33354
id okr-10986-33354
recordtype oai_dc
spelling okr-10986-333542022-09-20T00:13:11Z Does Greater Regulatory Burden Lead to More Corruption? Evidence Using Firm-Level Survey Data for Developing Countries Amin, Mohammad Soh, Yew Chong CORRUPTION REGULATION BRIBERY Regulation often creates opportunities for public officials to extract bribes. If this is true, deregulation offers a simple way to combat 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 experiences of the firms with bribery and regulatory burden. Exploiting within-country and industry-level variation in regulatory burden, the analysis finds a large, positive effect of regulatory burden on corruption. For the baseline results, the bribery rate is higher by about 0.03 percentage point for each percentage point increase in the regulatory burden. The finding is robust to several endogeneity checks. 2020-02-20T16:06:24Z 2020-02-20T16:06:24Z 2020-02 Working Paper http://documents.worldbank.org/curated/en/296861582037503905/Does-Greater-Regulatory-Burden-Lead-to-More-Corruption-Evidence-Using-Firm-Level-Survey-Data-for-Developing-Countries http://hdl.handle.net/10986/33354 English Policy Research Working Paper;No. 9149 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic CORRUPTION
REGULATION
BRIBERY
spellingShingle CORRUPTION
REGULATION
BRIBERY
Amin, Mohammad
Soh, Yew Chong
Does Greater Regulatory Burden Lead to More Corruption? Evidence Using Firm-Level Survey Data for Developing Countries
relation Policy Research Working Paper;No. 9149
description Regulation often creates opportunities for public officials to extract bribes. If this is true, deregulation offers a simple way to combat 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 experiences of the firms with bribery and regulatory burden. Exploiting within-country and industry-level variation in regulatory burden, the analysis finds a large, positive effect of regulatory burden on corruption. For the baseline results, the bribery rate is higher by about 0.03 percentage point for each percentage point increase in the regulatory burden. The finding is robust to several endogeneity checks.
format Working Paper
author Amin, Mohammad
Soh, Yew Chong
author_facet Amin, Mohammad
Soh, Yew Chong
author_sort Amin, Mohammad
title Does Greater Regulatory Burden Lead to More Corruption? Evidence Using Firm-Level Survey Data for Developing Countries
title_short Does Greater Regulatory Burden Lead to More Corruption? Evidence Using Firm-Level Survey Data for Developing Countries
title_full Does Greater Regulatory Burden Lead to More Corruption? Evidence Using Firm-Level Survey Data for Developing Countries
title_fullStr Does Greater Regulatory Burden Lead to More Corruption? Evidence Using Firm-Level Survey Data for Developing Countries
title_full_unstemmed Does Greater Regulatory Burden Lead to More Corruption? Evidence Using Firm-Level Survey Data for Developing Countries
title_sort does greater regulatory burden lead to more corruption? evidence using firm-level survey data for developing countries
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/296861582037503905/Does-Greater-Regulatory-Burden-Lead-to-More-Corruption-Evidence-Using-Firm-Level-Survey-Data-for-Developing-Countries
http://hdl.handle.net/10986/33354
_version_ 1764478551447306240

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