The Effect Of Corruption On Investment Growth: Evidence From Firms In Latin America, Sub-Saharan Africa And Transition Countries

Many of the empirical studies that analyze the impact of corruption on investment have three common features: they employ aggregate (country-level) data on investment, corruption is measured at the country-level, and data for countries from several regions are pooled together. This paper uses firm-level data on investment and measures corruption at the firm and country-level, and allows the effect of corruption to vary by region. This dependent variable is firms' investment growth and the authors employ six measures of corruption from four different sources: two firm-level measures and four country-level measures.