No abstract

No abstract

No abstract

No abstract

The aim of this study is to estimate the impact of bribery on the wage performance of formal firms. Setting:The empirical assessment uses a unique firm-level data set comprising 1141 Nigerian manufacturing firms, some of whom paid bribes to corrupt bureaucrats. Methods:The study utilised a standard ordinary least-squares estimation technique. To address the potential endogeneity and measurement error bias arising from bribery, we used industry-location average bribe rate as instrument.Results: We find a significant negative effect of bribery on wages to the extent that a one percentage point increase in the rate of bribery reduces the level of wages paid to the workers by about 230 000 naira per worker per annum. A robustness check using the counterfactual evaluation framework of propensity score matching, supports the ordinary least-squares estimation. Conclusion:This study lends support to the firm level-based hypothesis that bribery has a detrimental long-term effect on firm performance. In particular, that employers using their monopsony power shift the burden of bribery to the workers through compressing wages. In addition, our results justify the enormous attention of the international community in combating bribery and corruption in Nigeria and other developing countries.

Purpose – The purpose of this paper is to test the Feldstein and Horioka (FH), theory that capital mobility should be low if there is high correlation between saving and investment, in some African countries. Design/methodology/approach – This paper tests the cointegration between saving and investment using bounds testing approach to cointegration and derive the long-run elasticities using autoregressive-distributed lag (ARDL) and Phillips-Hansen fully modified OLS for African countries over the period 1960-2008. This paper conducted the test for unit root properties using Augumented Dick-Fuller procedure. Findings – Their main findings are: investment and saving are strongly cointegrated for The Gambia and Burkina Faso and marginally cointegrated for Ghana, Mali, Cote d'Ivoire and Benin when investment is the dependent variable and there is evidence of cointegration between saving and investment when saving is the dependent variable for Senegal and Niger and no evidence of cointegration for Cameroon, Chad and Togo; the long-run coefficients on saving are low or negative implying low correlation. This paper concludes that Feldstein and Horioka theory could not be ruled out in African countries investigated. Originality/value – This paper is the original paper conducted on West African countries. This study has not across any paper bearing the same title on the countries of coverage.