| Publication |
2012.
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| Summary/Abstract |
Existing empirical evidence suggests that corruption in infrastructure is prevalent in developing countries. Using data on manufacturing firms in Kenya, Uganda and Tanzania, this study investigates what type of firms are asked to pay bribes by public officials in order to access infrastructure. We find that firms in Tanzania and Uganda face more severe problems with infrastructure than those in Kenya. Despite facing fewer infrastructure constraints, we find that Kenyan firms are more likely to be asked for bribes than Ugandan and Tanzanian firms; suggesting that paying bribes could be enabling Kenyan firms to access limited infrastructure. We also find that larger firms are less likely to be asked for bribes, and that an efficient court system reduces the propensity of public officials to ask for bribes. In addition, firms located in capital cities are more likely to be asked for bribe payments. These findings provide policy makers with specific targets to aim for in the design of policies meant to address corruption in infrastructure provision.
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