Is it worth it: Does corruption influence firm productivity?


  • Gooroochurn
  • N.
  • Görg
  • H.
Publication Date

Does it pay to be corrupt? This column presents evidence from 22 emerging economies in Europe and the former Soviet Union on the effects of corruption on firm productivity. It finds that in a highly corrupt country, bribing officials actually has a negative effect on productivity, whereas in countries with strong institutions, it can open doors that competitors dare not touch.

Kiel Institute Expert


JEL Classification
P37, O14

Key Words

  • bribe tax
  • corruption
  • firm performance
  • productivity
  • Produktivität