Bribery in Indonesia: some evidence from micro-level data

  title={Bribery in Indonesia: some evidence from micro-level data},
  author={A. Kuncoro},
  journal={Bulletin of Indonesian Economic Studies},
  pages={329 - 354}
  • A. Kuncoro
  • Published 2004
  • Economics
  • Bulletin of Indonesian Economic Studies
This paper outlines and tests a model in which firms seek to reduce the cost of taxes and regulatory compliance by offering bribes to government officials. It finds that firms' profitability (scaled by production costs) largely determines both the amounts paid and the time spent negotiating bribes with officials. Competition between arms of the bureaucracy for bribe income seems to be a result of decentralisation, but the analysis suggests that this competition would lead to a spreading of… Expand
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