Does Corruption Impact on Firms' Ability to Conduct Business in Mauritania? Evidence from Investment Climate Survey Data
This paper seeks to understand whether Mauritanian firms deem corruption as an obstacle to operate and grow, to identify the profile of firms that are more likely to make informal payments, and to quantify the size of these payments. The results of...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/12/8879695/corruption-impact-firms-ability-conduct-business-mauritania-evidence-investment-climate-survey-data http://hdl.handle.net/10986/7570 |
| Summary: | This paper seeks to understand whether
Mauritanian firms deem corruption as an obstacle to operate
and grow, to identify the profile of firms that are more
likely to make informal payments, and to quantify the size
of these payments. The results of the analysis show that
perceptions of corruption can be potentially misleading.
Corruption is not considered to be one of the most taxing
factors impeding the growth of firms in Mauritania. Yet, its
cost to firms is significant and greater than in the
comparator group countries. This means that corruption is
internalized by firms and considered an accepted practice.
Alternatively, firms may fear reporting corruption practices
for fear of retaliation. Econometric evidence on the
propensity and intensity of bribes suggests that medium-size
firms suffer the most from corruption in Mauritania. Larger
firms are more established and connected, do not fear
exiting the market, and are less likely to be harassed.
Smaller firms are less visible and may be able to escape the
control of public officials by operating largely in the
informal sector. Medium-size firms are the most likely to
pay bribes and to pay the highest amounts as a percentage of
their total annual sales, which places a heavy burden on
their ability to grow. |
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