Bribery, Plant Size and Size Dependent Distortions
This paper documents that small plants spend a higher fraction of their output on bribery than big plants. I develop a one-sector growth model in which size-dependent distortions, bribery opportunities, and different plant sizes coexist. Two sets of exercises are conducted to quantify the interplay of size-dependent distortions and bribery. First, the model is calibrated to generate the plant size distribution of the U.S., by assuming the U.S. is free of distortions. Counterfactual exercises show that size-dependent distortions become less distortionary in the presence of bribery opportunities since plants are able to avoid distortions by paying larger bribes. Second, the model parameters are calibrated with distortions and bribery opportunities using Turkish data. The inferred level of distortions is sizable for all plants. The removal of distortions can have a substantial effect on both the output and the mean plant size which could increase by 63.6 and 82.5 percent, respectively
Year of publication: |
2022
|
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Authors: | Tamkoc, M Nazim |
Publisher: |
[S.l.] : SSRN |
Subject: | Korruption | Corruption | Betriebsgröße | Firm size | Theorie | Theory |
Saved in:
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