Bribery, corruption and bureaucratic hassle: Evidence from Myanmar

Soans, A and Abe, M 2016, 'Bribery, corruption and bureaucratic hassle: Evidence from Myanmar', Journal of Asian Economics, vol. 44, pp. 41-56.


Document type: Journal Article
Collection: Journal Articles

Title Bribery, corruption and bureaucratic hassle: Evidence from Myanmar
Author(s) Soans, A
Abe, M
Year 2016
Journal name Journal of Asian Economics
Volume number 44
Start page 41
End page 56
Total pages 16
Publisher Elsevier
Abstract Corruption has been found to be the most severe obstacle to business operations, according to a recent survey of over 3000 firms in Myanmar. This paper sets out to understand the structure of corruption through an econometric analysis of this survey. It finds that firms with higher 'ability to pay' (proxied by sales revenue and employee growth) are more likely to pay bribes. While firms with lower 'refusal power' (i.e. those dependent on bureaucratic permissions to export and import) are more likely to find corruption to be an obstacle. A distinct but related question is whether bribes act as 'efficiency grease' by allowing firms to circumvent red tape. No evidence is found to support this hypothesis; in fact, firms that pay bribes report greater bureaucratic hassle compared to firms that do not. This result fits in more closely with the view that red tape could be used to extract bribes from firms.
Subject Labour Economics
International Economics and International Finance
Keyword(s) Bribery
Corruption
D00
Efficiency grease
L25
Myanmar
O12
Private firms
Red tape
DOI - identifier 10.1016/j.asieco.2016.04.003
Copyright notice © 2016 Elsevier Inc.
ISSN 1049-0078
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