Does Corruption Impact on Firms' Ability to Conduct Business in Mauritania? Evidence from Investment Climate Survey Data

This paper seeks to understand whether Mauritanian firms deem corruption as an obstacle to operate and grow, to identify the profile of firms that are more likely to make informal payments, and to quantify the size of these payments. The results of...

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Main Authors: Francisco, Manuela, Pontara, Nicola
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
CPI
Online Access:http://documents.worldbank.org/curated/en/2007/12/8879695/corruption-impact-firms-ability-conduct-business-mauritania-evidence-investment-climate-survey-data
http://hdl.handle.net/10986/7570
id okr-10986-7570
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCESS TO CREDIT
ACCESS TO FINANCE
ACCOUNTABILITY
ADMINISTRATIVE SYSTEM
AGGREGATE GOVERNANCE INDICATORS
ANTI-COMPETITIVE PRACTICES
AUTHORITY
BANK CREDIT
BARRIERS TO GROWTH
BORROWING
BRIBE
BRIBE PAYERS
BRIBERY
BRIBES
BUREAUCRACY
BUREAUCRAT
BUREAUCRATIC CONTROL
BUREAUCRATIC PROCEDURES
BUREAUCRATIC SYSTEM
BUSINESS ENVIRONMENT
BUSINESS OPERATIONS
BUSINESS OWNERSHIP
BUSINESS PEOPLE
BUSINESSMEN
CAPITAL STOCK
CIVIL LIBERTIES
COMPANY
COMPETITORS
COMPOSITE GOVERNANCE INDICATORS
CONSTITUENCIES
CORRUPT
CORRUPT PRACTICES
CORRUPTION
CORRUPTION DATA
CORRUPTION PERCEPTION
CORRUPTION VARIABLES
COUNTRIES % FIRMS
COUNTRY REPORTS
CPI
CREDIT ACCESS
CRIME
DECISION-MAKING
DEGREE OF CORRUPTION
DEMOCRACY
DEMOCRATIZATION
ECONOMIC AGENTS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC REFORMS
EMBEZZLEMENT
EMPLOYEE
EMPLOYMENT
ENTREPRENEURS
EXPANSION
EXPLOITATION
FAMILIES
FAMILY BUSINESS
FIGHTING CORRUPTION
FINANCIAL COST
FINANCIAL MANAGEMENT
FINANCIAL MARKETS
FIRM SIZE
FOREIGN DIRECT INVESTMENT
FOREIGN FIRMS
FOREIGN OWNERSHIP
GOOD GOVERNANCE
GOVERNANCE INDICATORS
GOVERNMENT EFFECTIVENESS
GOVERNMENT OFFICIALS
GOVERNMENT REGULATIONS
GOVERNMENT SERVICES
GRAFT
GROWTH RATE
GROWTH RATES
HUMAN RIGHTS
INCOME
INEQUALITY
INFORMAL PAYMENT
INFORMAL PAYMENTS
INFORMAL SECTOR
INFORMATION TECHNOLOGY
INSURANCE SERVICES
INTERNATIONAL BANK
INTERNATIONAL TRADE
INVESTMENT CLIMATE
KEY CHALLENGE
KICKBACKS
LACK OF COMPETITION
LATIN AMERICAN
LEADERSHIP
LISTED COMPANY
LOAN
MEASURING CORRUPTION
MEASURING GOVERNANCE
MEDIUM ENTERPRISES
MICRO ENTERPRISES
MONOPOLIES
NATURAL RESOURCES
NEW BUSINESS
OBSTACLES TO GROWTH
OFFICE HOLDERS
OLIGARCHY
PARTY
PATRONAGE
PERCEPTION OF CORRUPTION
PERSONAL GAIN
PETTY CORRUPTION
POLITICAL CORRUPTION
POLITICAL ECONOMY
POLITICAL PARTIES
POLITICAL POWER
POLITICAL STABILITY
POLITICIANS
PREFERENTIAL
PRIVATE GAIN
PRIVATE SECTOR DEVELOPMENT
PROCUREMENT
PROCUREMENT POLICIES
PROFITABILITY
PROPERTY RIGHTS
PUBLIC ADMINISTRATION
PUBLIC CONTRACTS
PUBLIC FINANCE
PUBLIC FINANCES
PUBLIC INVESTMENT
PUBLIC OFFICIAL
PUBLIC OFFICIALS
PUBLIC RESOURCES
PUBLIC SECTOR
PUBLIC SPENDING
REAL ESTATE
RED TAPE
REGULATORY BURDEN
REGULATORY POLICIES
REGULATORY QUALITY
RULE OF LAW
SKILLED WORKERS
SMALL FIRMS
SOURCE OF INFORMATION
STATE CONTROL
SUB-SAHARAN AFRICA
TAX INSPECTIONS
TAX RATE
TAX RATES
TAX REVENUES
TERM CREDIT
TRANSPARENCY
UNOFFICIAL ECONOMY
VIOLENCE
WEALTH CREATION
spellingShingle ACCESS TO CREDIT
ACCESS TO FINANCE
ACCOUNTABILITY
ADMINISTRATIVE SYSTEM
AGGREGATE GOVERNANCE INDICATORS
ANTI-COMPETITIVE PRACTICES
AUTHORITY
BANK CREDIT
BARRIERS TO GROWTH
BORROWING
BRIBE
BRIBE PAYERS
BRIBERY
BRIBES
BUREAUCRACY
BUREAUCRAT
BUREAUCRATIC CONTROL
BUREAUCRATIC PROCEDURES
BUREAUCRATIC SYSTEM
BUSINESS ENVIRONMENT
BUSINESS OPERATIONS
BUSINESS OWNERSHIP
BUSINESS PEOPLE
BUSINESSMEN
CAPITAL STOCK
CIVIL LIBERTIES
COMPANY
COMPETITORS
COMPOSITE GOVERNANCE INDICATORS
CONSTITUENCIES
CORRUPT
CORRUPT PRACTICES
CORRUPTION
CORRUPTION DATA
CORRUPTION PERCEPTION
CORRUPTION VARIABLES
COUNTRIES % FIRMS
COUNTRY REPORTS
CPI
CREDIT ACCESS
CRIME
DECISION-MAKING
DEGREE OF CORRUPTION
DEMOCRACY
DEMOCRATIZATION
ECONOMIC AGENTS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC REFORMS
EMBEZZLEMENT
EMPLOYEE
EMPLOYMENT
ENTREPRENEURS
EXPANSION
EXPLOITATION
FAMILIES
FAMILY BUSINESS
FIGHTING CORRUPTION
FINANCIAL COST
FINANCIAL MANAGEMENT
FINANCIAL MARKETS
FIRM SIZE
FOREIGN DIRECT INVESTMENT
FOREIGN FIRMS
FOREIGN OWNERSHIP
GOOD GOVERNANCE
GOVERNANCE INDICATORS
GOVERNMENT EFFECTIVENESS
GOVERNMENT OFFICIALS
GOVERNMENT REGULATIONS
GOVERNMENT SERVICES
GRAFT
GROWTH RATE
GROWTH RATES
HUMAN RIGHTS
INCOME
INEQUALITY
INFORMAL PAYMENT
INFORMAL PAYMENTS
INFORMAL SECTOR
INFORMATION TECHNOLOGY
INSURANCE SERVICES
INTERNATIONAL BANK
INTERNATIONAL TRADE
INVESTMENT CLIMATE
KEY CHALLENGE
KICKBACKS
LACK OF COMPETITION
LATIN AMERICAN
LEADERSHIP
LISTED COMPANY
LOAN
MEASURING CORRUPTION
MEASURING GOVERNANCE
MEDIUM ENTERPRISES
MICRO ENTERPRISES
MONOPOLIES
NATURAL RESOURCES
NEW BUSINESS
OBSTACLES TO GROWTH
OFFICE HOLDERS
OLIGARCHY
PARTY
PATRONAGE
PERCEPTION OF CORRUPTION
PERSONAL GAIN
PETTY CORRUPTION
POLITICAL CORRUPTION
POLITICAL ECONOMY
POLITICAL PARTIES
POLITICAL POWER
POLITICAL STABILITY
POLITICIANS
PREFERENTIAL
PRIVATE GAIN
PRIVATE SECTOR DEVELOPMENT
PROCUREMENT
PROCUREMENT POLICIES
PROFITABILITY
PROPERTY RIGHTS
PUBLIC ADMINISTRATION
PUBLIC CONTRACTS
PUBLIC FINANCE
PUBLIC FINANCES
PUBLIC INVESTMENT
PUBLIC OFFICIAL
PUBLIC OFFICIALS
PUBLIC RESOURCES
PUBLIC SECTOR
PUBLIC SPENDING
REAL ESTATE
RED TAPE
REGULATORY BURDEN
REGULATORY POLICIES
REGULATORY QUALITY
RULE OF LAW
SKILLED WORKERS
SMALL FIRMS
SOURCE OF INFORMATION
STATE CONTROL
SUB-SAHARAN AFRICA
TAX INSPECTIONS
TAX RATE
TAX RATES
TAX REVENUES
TERM CREDIT
TRANSPARENCY
UNOFFICIAL ECONOMY
VIOLENCE
WEALTH CREATION
Francisco, Manuela
Pontara, Nicola
Does Corruption Impact on Firms' Ability to Conduct Business in Mauritania? Evidence from Investment Climate Survey Data
geographic_facet Africa
Mauritania
relation Policy Research Working Paper; No. 4439
description This paper seeks to understand whether Mauritanian firms deem corruption as an obstacle to operate and grow, to identify the profile of firms that are more likely to make informal payments, and to quantify the size of these payments. The results of the analysis show that perceptions of corruption can be potentially misleading. Corruption is not considered to be one of the most taxing factors impeding the growth of firms in Mauritania. Yet, its cost to firms is significant and greater than in the comparator group countries. This means that corruption is internalized by firms and considered an accepted practice. Alternatively, firms may fear reporting corruption practices for fear of retaliation. Econometric evidence on the propensity and intensity of bribes suggests that medium-size firms suffer the most from corruption in Mauritania. Larger firms are more established and connected, do not fear exiting the market, and are less likely to be harassed. Smaller firms are less visible and may be able to escape the control of public officials by operating largely in the informal sector. Medium-size firms are the most likely to pay bribes and to pay the highest amounts as a percentage of their total annual sales, which places a heavy burden on their ability to grow.
format Publications & Research :: Policy Research Working Paper
author Francisco, Manuela
Pontara, Nicola
author_facet Francisco, Manuela
Pontara, Nicola
author_sort Francisco, Manuela
title Does Corruption Impact on Firms' Ability to Conduct Business in Mauritania? Evidence from Investment Climate Survey Data
title_short Does Corruption Impact on Firms' Ability to Conduct Business in Mauritania? Evidence from Investment Climate Survey Data
title_full Does Corruption Impact on Firms' Ability to Conduct Business in Mauritania? Evidence from Investment Climate Survey Data
title_fullStr Does Corruption Impact on Firms' Ability to Conduct Business in Mauritania? Evidence from Investment Climate Survey Data
title_full_unstemmed Does Corruption Impact on Firms' Ability to Conduct Business in Mauritania? Evidence from Investment Climate Survey Data
title_sort does corruption impact on firms' ability to conduct business in mauritania? evidence from investment climate survey data
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2007/12/8879695/corruption-impact-firms-ability-conduct-business-mauritania-evidence-investment-climate-survey-data
http://hdl.handle.net/10986/7570
_version_ 1764402792275902464
spelling okr-10986-75702021-04-23T14:02:35Z Does Corruption Impact on Firms' Ability to Conduct Business in Mauritania? Evidence from Investment Climate Survey Data Francisco, Manuela Pontara, Nicola ACCESS TO CREDIT ACCESS TO FINANCE ACCOUNTABILITY ADMINISTRATIVE SYSTEM AGGREGATE GOVERNANCE INDICATORS ANTI-COMPETITIVE PRACTICES AUTHORITY BANK CREDIT BARRIERS TO GROWTH BORROWING BRIBE BRIBE PAYERS BRIBERY BRIBES BUREAUCRACY BUREAUCRAT BUREAUCRATIC CONTROL BUREAUCRATIC PROCEDURES BUREAUCRATIC SYSTEM BUSINESS ENVIRONMENT BUSINESS OPERATIONS BUSINESS OWNERSHIP BUSINESS PEOPLE BUSINESSMEN CAPITAL STOCK CIVIL LIBERTIES COMPANY COMPETITORS COMPOSITE GOVERNANCE INDICATORS CONSTITUENCIES CORRUPT CORRUPT PRACTICES CORRUPTION CORRUPTION DATA CORRUPTION PERCEPTION CORRUPTION VARIABLES COUNTRIES % FIRMS COUNTRY REPORTS CPI CREDIT ACCESS CRIME DECISION-MAKING DEGREE OF CORRUPTION DEMOCRACY DEMOCRATIZATION ECONOMIC AGENTS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC REFORMS EMBEZZLEMENT EMPLOYEE EMPLOYMENT ENTREPRENEURS EXPANSION EXPLOITATION FAMILIES FAMILY BUSINESS FIGHTING CORRUPTION FINANCIAL COST FINANCIAL MANAGEMENT FINANCIAL MARKETS FIRM SIZE FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN OWNERSHIP GOOD GOVERNANCE GOVERNANCE INDICATORS GOVERNMENT EFFECTIVENESS GOVERNMENT OFFICIALS GOVERNMENT REGULATIONS GOVERNMENT SERVICES GRAFT GROWTH RATE GROWTH RATES HUMAN RIGHTS INCOME INEQUALITY INFORMAL PAYMENT INFORMAL PAYMENTS INFORMAL SECTOR INFORMATION TECHNOLOGY INSURANCE SERVICES INTERNATIONAL BANK INTERNATIONAL TRADE INVESTMENT CLIMATE KEY CHALLENGE KICKBACKS LACK OF COMPETITION LATIN AMERICAN LEADERSHIP LISTED COMPANY LOAN MEASURING CORRUPTION MEASURING GOVERNANCE MEDIUM ENTERPRISES MICRO ENTERPRISES MONOPOLIES NATURAL RESOURCES NEW BUSINESS OBSTACLES TO GROWTH OFFICE HOLDERS OLIGARCHY PARTY PATRONAGE PERCEPTION OF CORRUPTION PERSONAL GAIN PETTY CORRUPTION POLITICAL CORRUPTION POLITICAL ECONOMY POLITICAL PARTIES POLITICAL POWER POLITICAL STABILITY POLITICIANS PREFERENTIAL PRIVATE GAIN PRIVATE SECTOR DEVELOPMENT PROCUREMENT PROCUREMENT POLICIES PROFITABILITY PROPERTY RIGHTS PUBLIC ADMINISTRATION PUBLIC CONTRACTS PUBLIC FINANCE PUBLIC FINANCES PUBLIC INVESTMENT PUBLIC OFFICIAL PUBLIC OFFICIALS PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SPENDING REAL ESTATE RED TAPE REGULATORY BURDEN REGULATORY POLICIES REGULATORY QUALITY RULE OF LAW SKILLED WORKERS SMALL FIRMS SOURCE OF INFORMATION STATE CONTROL SUB-SAHARAN AFRICA TAX INSPECTIONS TAX RATE TAX RATES TAX REVENUES TERM CREDIT TRANSPARENCY UNOFFICIAL ECONOMY VIOLENCE WEALTH CREATION This paper seeks to understand whether Mauritanian firms deem corruption as an obstacle to operate and grow, to identify the profile of firms that are more likely to make informal payments, and to quantify the size of these payments. The results of the analysis show that perceptions of corruption can be potentially misleading. Corruption is not considered to be one of the most taxing factors impeding the growth of firms in Mauritania. Yet, its cost to firms is significant and greater than in the comparator group countries. This means that corruption is internalized by firms and considered an accepted practice. Alternatively, firms may fear reporting corruption practices for fear of retaliation. Econometric evidence on the propensity and intensity of bribes suggests that medium-size firms suffer the most from corruption in Mauritania. Larger firms are more established and connected, do not fear exiting the market, and are less likely to be harassed. Smaller firms are less visible and may be able to escape the control of public officials by operating largely in the informal sector. Medium-size firms are the most likely to pay bribes and to pay the highest amounts as a percentage of their total annual sales, which places a heavy burden on their ability to grow. 2012-06-08T19:16:30Z 2012-06-08T19:16:30Z 2007-12 http://documents.worldbank.org/curated/en/2007/12/8879695/corruption-impact-firms-ability-conduct-business-mauritania-evidence-investment-climate-survey-data http://hdl.handle.net/10986/7570 English Policy Research Working Paper; No. 4439 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Mauritania