Based on a unique panel dataset consisting of both formal and informal firms surveyed every other year from 2005 to 2013, this paper explores the benefits of formalization to the government and firm employees in Vietnam. We find that formalization benefits the government by increasing the amount...

This paper examines the relationship between formalization and firm-level outcomes in Vietnam using a unique panel dataset. Results show that switching firms differ from informal nonswitching firms, confirming heterogeneity. We also find that becoming formal leads to increased profits, value...

We analyse policy makers' incentives to fight corruption under different institutional qualities. We find that 'public officials', even when non-corrupt, significantly distort anti-corruption institutions by choosing a lower detection probability when this probability applies to their own...

In our framed laboratory experiment, two Public Officials, A and B, make consecutive decisions regarding embezzlement from separate funds. Official B observes Official A’s decision before making their own. There are four treatments: three with deterrence and one without. We find a peer effect...

This paper investigates China's influence on local economic development in 37 African countries between 1997 and 2007. We compare the average changes in economic growth, migration, spatial inequality, and welfare of mineral-rich districts, both prior and after China's WTO Accession, to the...

This paper investigates the relationship between mining and spatial inequality in Africa during 2001-12. The identification strategy is based on a unilateral causation between mining and district inequality. The findings show that when minerals are aggregated, mining increases district...

Experimental studies have shown that deterrence (monitoring and punishment) can be an effective anti-corruption policy. • Even when they themselves stand to lose, policymakers may enact deterrence policies with real teeth… • … However, policymakers’ legitimacy is crucial: a given...