Are Corruption and Taxation Really Harmful to Growth?

Chia sẻ: Nguyen Nhi | Ngày: | Loại File: PDF | Số trang:25

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Are Corruption and Taxation Really Harmful to Growth?

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Exploiting a unique data set containing information about the estimated bribe payments of Ugandan firms, the authors study the relationship between bribe payments, taxes, and firm growth in Uganda for the period 1995-97. Using industry-location averages to circumvent the potential problem of endogeneity, and to deal with issues of measurement error, they find that both the rate of taxation, and the rate of bribery are negatively correlated with firm growth.

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