Corruption and management practices: Firm level evidence

We investigate the effects of corruption on the management quality of firms. * We focus on the practices of manufacturing firms across ten transition countries. * Contract dependent industries have lower management quality in corrupt regions. * They have also lower investment in R&D and smaller product markets. We argue that corruption can decrease aggregate productivity by deteriorating firm management practices. We investigate the impact of regional corruption on the management quality of firms within the manufacturing sector in Central and Eastern Europe. The empirical challenge is that... Mehr ...