Corruption and Firms

@article{Colonnelli2021CorruptionAF,
  title={Corruption and Firms},
  author={Emanuele Colonnelli and Mounu Prem},
  journal={PSN: Corruption (Topic)},
  year={2021}
}
We estimate the causal real economic effects of a randomized anti-corruption crackdown on local governments in Brazil using rich micro-data on corruption and firms. After anti-corruption audits, municipalities experience an increase in the number of firms concentrated in sectors most dependent on government relationships. Through the estimation of geographic spillovers and additional tests, we show that audits operate via both a direct detection effect as well as through indirect deterrence… 
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49 Citations
Highly Influential Citations
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Background Citations
23
Methods Citations
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Results Citations
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49 Citations

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The Externalities of Corruption: Evidence from Entrepreneurial Firms in China*
Exploiting China’s anti-corruption campaign, we show that following a decrease in corruption, firm performance improves. Small and young firms benefit more. We identify the channels through which…
The Externalities of Corruption: Evidence from Entrepreneurial Activity in China
We show that corruption affects negatively the performance of small entrepreneurial firms, which compete with corrupted industry peers. We exploit the Chinese anti-corruption campaign to establish…
Revealing Corruption: Firm and Worker Level Evidence from Brazil
We study how the disclosure of corrupt practices affects firms. We construct novel firm-level measures of involvement in corrupt practices using randomized audits of public procurement in Brazil. On…
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