Publications → Governance and Social Issues → Good Governance

Why do firms hide? Bribes and unofficial activity after Communism

Our survey of private manufacturing firms finds the size of hidden “unofficial” activity to be much larger in Russia and Ukraine than in Poland, the Slovak Republic and Romania. A comparison of crosscountry averages shows that managers in Russia and Ukraine face higher effective tax rates, worse bureaucratic corruption, greater incidence of mafia protection, and have less faith in the court system. Our firm-level regressions for the three east European countries find that bureaucratic corruption is significantly associated with hiding output.

Link http://www.ebrd.org/pubs/econo/wp0042.htm
Author Johnson, S., Kaufmann, D., McMillan, J., Woodruff, Ch.
Date 01-Oct-1999
Institute EBRD
Tags firm, corruption, Russia, Poland, Slovac

See also

  1. Tax Systems in the Selected Transition Economies
  2. Objectives and constraints of entrepreneurs: evidence from small and medium-sized enterprises in Russia and Bulgaria
  3. Entrepreneurs and the ordering of institutional reform: Poland, Romania, Russia, the Slovak Republic and Ukraine compared
  4. Measuring progress in transition and towards EU accession: a comparison of manufacturing firms in Poland, Romania and Spain
  5. Economic growth, income distribution, and poverty in Poland during transition

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