The Persistence of Corruption and Regulatory Compliance Failures : Theory and Evidence /

This paper examines the reasons why corruption and policy distortions tend to exhibit a high degree of persistence in certain regimes. We identify circumstances under which a firm seeks to evade regulations by (1) bribing of local inspectors, and (2) lobbying high-level government politicians to res...

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Detalhes bibliográficos
Autor principal: Fredriksson, Per
Outros Autores: Damania, Richard, Mani, Muthukumara
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2003.
Colecção:IMF Working Papers; Working Paper ; No. 2003/172
Acesso em linha:Full text available on IMF
Descrição
Resumo:This paper examines the reasons why corruption and policy distortions tend to exhibit a high degree of persistence in certain regimes. We identify circumstances under which a firm seeks to evade regulations by (1) bribing of local inspectors, and (2) lobbying high-level government politicians to resist legal reforms designed to improve judicial efficiency and eliminate corruption. The analysis predicts that in politically unstable regimes, the institutions necessary to monitor and enforce compliance are weak. In such countries, corruption is more pervasive and the compliance with regulations is low. The empirical results support the predictions of the model.
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Descrição Física:1 online resource (33 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students