Are Corruption and Taxation Really Harmful to Growth? Firm-Level Evidence
Exploiting a unique data set containing information about the estimated bribe payments of Ugandan firms, the authors study the relationship between bribe payments, taxes, and firm growth in Uganda for the period 1995-97. Using industry-location ave...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2000/11/729381/corruption-taxation-really-harmful-growth-firm-level-evidence http://hdl.handle.net/10986/19766 |
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okr-10986-197662021-04-23T14:03:44Z Are Corruption and Taxation Really Harmful to Growth? Firm-Level Evidence Fisman, Raymond Svensson, Jakob ABSOLUTE TERMS ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE TAX RATES BANKING SYSTEM BRIBERY BRIBES CORRUPT OFFICIALS CORRUPTION CORRUPTION DATA COUNTRY LEVEL CRISES DATA COLLECTION DEVELOPMENT RESEARCH DIRECT INVESTMENT DISCRETION ECONOMETRIC ISSUES ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC STUDIES ECONOMICS EMPIRICAL MODEL EMPLOYMENT ERROR TERM EXPLANATORY VARIABLES FIGHTING CORRUPTION FOREIGN OWNERSHIP GRAFT GROWTH EQUATION GROWTH RATE GROWTH RATES HIGH GROWTH HUMAN CAPITAL IMPROVING PRODUCTIVITY INDEPENDENT VARIABLE MANAGERS MEASUREMENT ERROR MEASUREMENT ERRORS MEDIA MISGOVERNANCE NATIONAL INTEGRITY NEGATIVE EFFECT NEGATIVE IMPACT POINT DECLINE POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY PREFERENTIAL PRIVATE SECTOR PUBLIC INFRASTRUCTURE PUBLIC OFFICIALS PUBLIC SECTOR RULE OF LAW SAFETY SAFETY NET SHORT-RUN GROWTH STANDARD DEVIATION TAX RATES TRANSITION COUNTRIES Exploiting a unique data set containing information about the estimated bribe payments of Ugandan firms, the authors study the relationship between bribe payments, taxes, and firm growth in Uganda for the period 1995-97. Using industry-location averages to circumvent the potential problem of endogeneity, and to deal with issues of measurement error, they find that both the rate of taxation, and the rate of bribery are negatively correlated with firm growth. For the full data set, a one percentage point increase in the bribery rate is associated with three percentage point reduction in firm growth - an effect about three times that of taxation. Moreover, after excluding outliers, the authors find that bribery has a much greater negative impact on growth, and taxation a considerably smaller one. This provides some validation of firm-level theories of corruption, which posit that corruption retards development, even more than taxation does. 2014-08-27T18:21:45Z 2014-08-27T18:21:45Z 2000-11 http://documents.worldbank.org/curated/en/2000/11/729381/corruption-taxation-really-harmful-growth-firm-level-evidence http://hdl.handle.net/10986/19766 English en_US Policy Research Working Paper;No. 2485 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Uganda |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ABSOLUTE TERMS ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE TAX RATES BANKING SYSTEM BRIBERY BRIBES CORRUPT OFFICIALS CORRUPTION CORRUPTION DATA COUNTRY LEVEL CRISES DATA COLLECTION DEVELOPMENT RESEARCH DIRECT INVESTMENT DISCRETION ECONOMETRIC ISSUES ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC STUDIES ECONOMICS EMPIRICAL MODEL EMPLOYMENT ERROR TERM EXPLANATORY VARIABLES FIGHTING CORRUPTION FOREIGN OWNERSHIP GRAFT GROWTH EQUATION GROWTH RATE GROWTH RATES HIGH GROWTH HUMAN CAPITAL IMPROVING PRODUCTIVITY INDEPENDENT VARIABLE MANAGERS MEASUREMENT ERROR MEASUREMENT ERRORS MEDIA MISGOVERNANCE NATIONAL INTEGRITY NEGATIVE EFFECT NEGATIVE IMPACT POINT DECLINE POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY PREFERENTIAL PRIVATE SECTOR PUBLIC INFRASTRUCTURE PUBLIC OFFICIALS PUBLIC SECTOR RULE OF LAW SAFETY SAFETY NET SHORT-RUN GROWTH STANDARD DEVIATION TAX RATES TRANSITION COUNTRIES |
| spellingShingle |
ABSOLUTE TERMS ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE TAX RATES BANKING SYSTEM BRIBERY BRIBES CORRUPT OFFICIALS CORRUPTION CORRUPTION DATA COUNTRY LEVEL CRISES DATA COLLECTION DEVELOPMENT RESEARCH DIRECT INVESTMENT DISCRETION ECONOMETRIC ISSUES ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC STUDIES ECONOMICS EMPIRICAL MODEL EMPLOYMENT ERROR TERM EXPLANATORY VARIABLES FIGHTING CORRUPTION FOREIGN OWNERSHIP GRAFT GROWTH EQUATION GROWTH RATE GROWTH RATES HIGH GROWTH HUMAN CAPITAL IMPROVING PRODUCTIVITY INDEPENDENT VARIABLE MANAGERS MEASUREMENT ERROR MEASUREMENT ERRORS MEDIA MISGOVERNANCE NATIONAL INTEGRITY NEGATIVE EFFECT NEGATIVE IMPACT POINT DECLINE POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY PREFERENTIAL PRIVATE SECTOR PUBLIC INFRASTRUCTURE PUBLIC OFFICIALS PUBLIC SECTOR RULE OF LAW SAFETY SAFETY NET SHORT-RUN GROWTH STANDARD DEVIATION TAX RATES TRANSITION COUNTRIES Fisman, Raymond Svensson, Jakob Are Corruption and Taxation Really Harmful to Growth? Firm-Level Evidence |
| geographic_facet |
Africa Uganda |
| relation |
Policy Research Working Paper;No. 2485 |
| description |
Exploiting a unique data set containing
information about the estimated bribe payments of Ugandan
firms, the authors study the relationship between bribe
payments, taxes, and firm growth in Uganda for the period
1995-97. Using industry-location averages to circumvent the
potential problem of endogeneity, and to deal with issues of
measurement error, they find that both the rate of taxation,
and the rate of bribery are negatively correlated with firm
growth. For the full data set, a one percentage point
increase in the bribery rate is associated with three
percentage point reduction in firm growth - an effect about
three times that of taxation. Moreover, after excluding
outliers, the authors find that bribery has a much greater
negative impact on growth, and taxation a considerably
smaller one. This provides some validation of firm-level
theories of corruption, which posit that corruption retards
development, even more than taxation does. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Fisman, Raymond Svensson, Jakob |
| author_facet |
Fisman, Raymond Svensson, Jakob |
| author_sort |
Fisman, Raymond |
| title |
Are Corruption and Taxation Really Harmful to Growth? Firm-Level Evidence |
| title_short |
Are Corruption and Taxation Really Harmful to Growth? Firm-Level Evidence |
| title_full |
Are Corruption and Taxation Really Harmful to Growth? Firm-Level Evidence |
| title_fullStr |
Are Corruption and Taxation Really Harmful to Growth? Firm-Level Evidence |
| title_full_unstemmed |
Are Corruption and Taxation Really Harmful to Growth? Firm-Level Evidence |
| title_sort |
are corruption and taxation really harmful to growth? firm-level evidence |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2000/11/729381/corruption-taxation-really-harmful-growth-firm-level-evidence http://hdl.handle.net/10986/19766 |
| _version_ |
1764440586958405632 |