The idea that corruption hinders investments is not new, but the literature has tended to focus on the impact of average corruption levels. Based on 140,000 firm-level observations for 13 Central and Eastern European countries, this column explores the impact of corruption uncertainty. The evidence suggests that while foreign-controlled firms are unaffected by the corruption uncertainty factor, domestic firms decrease investments significantly when uncertainty about corruption practices increases. This decrease in investment is accompanied by a decrease in cash holdings, which points to a possible motive to build off-balance sheet funds for bribery purposes.
Overview First launched in 1995, the Corruption Perceptions Index has been widely credited with putting the issue of corruption on the international policy ...
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On the Allocation of Time - A Quantitative Analysis of the Roles of Taxes and Productivities
Georg Duernecker , Berthold Herrendorf
The Research Exchange is a way for faculty and corporate partners to collaborate on the following field studies.
Along with the rest of the planet, Europe is bracing for the impacts of climate change. Some areas are facing a range of risks, ranging from droughts to floods, but how well do we understand what to expect and how to respond?