Research Papers Product year
  • The incidence of graft on developing-country firms

    The authors measure the extent to which firms in developing countries are the target of bribes. Using new firm-level survey data from 33 African and Latin American countries, the analysis shows that perceptions adjust slowly to firms’ experience with corrupt officials and hence are an imperfect proxy for the true incidence of graft.

  • The Persistence of Corruption in Brazil

    Corruption imposes substantial economic costs, yet there is little evidence on the success of anti-corruption campaigns. The author studied the 1992 impeachment of president Collor in Brazil to evaluate its impact on politically connected companies both in the short- and long-term. Using an event study methodology, the short-run effect is established: family-connected firms on average lose 2 to 9 percentage points of their value on dates when information damaging to the impeached president is released. However, this decline is reversed entirely within one year. The author concludes that the impeachment had limited success in reducing corruption in Brazil.