Corruption Influences Growth At The Micro Level Essay examples

821 Words Dec 19th, 2016 4 Pages
Fisman and Svensson found some evidence that corruption influences growth at the micro level. They have used the dataset which contains information on the estimated bribe payments of the firms in Uganda. Their dataset contains information from the Ugandan Industrial Enterprise Survey about 243 firms in 5 locations and 14 industries. As it was discussed before, corruption has a very secretive and uncertain nature, and therefore there have been implemented different methods in order to increase efficiency of the data collection process. The surveys have been created through an industry association UMACIS which has a very reliable and trustworthy reputation in Uganda. UMACIS created corruption questions based on existing surveys on regulatory constraints, phrased them in an indirect way, and trained the enumerators. There were multiple questions about corruption which were placed at the end of the survey, so the enumerators would have time to establish trust with participants of the survey. The Ugandan Industrial Enterprise Survey was able to get a representative sample of firms through that. For the model, bribery was measured as a fraction of firm’s sales. To measure the rate of growth, the researchers used historical sales data. In their model, Fisman and Svensson encountered the problems of measurement error and endogeneity. Bureaucrats will require a bribe from a firm based on this firm’s ability and willingness to pay. For instance, if one firm has a better demand…

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