Corruption and Business Uncertainty in Indonesia

Kuncoro, Ari

doi:10.1355/ae23-1b

Cited by 66 publications

(63 citation statements)

References 13 publications

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“…The levels of informal payments, however, remain remarkably higher in private domestic and foreign owned firms relative to the state owned firms. Kuncoro (2006) finds a similar result for Indonesian firms, where firms with some degree of foreign ownership are about 10 per cent more likely to make informal payments to government officials than purely domestically owned firms. Similar results were found by Gaviria (2000) that used perceptionbased data at the firm level in 20 Latin American countries.…”

Section: Corruption Dimensions and Firms Participation In Corruption mentioning

confidence: 64%

Impact of Private Incidence of Corruption and Firm Ownership on Performance of Firms in Central and Eastern Europe

Blagojević

Damijan

2012

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in February 20121 The paper has benefited from financial support of the European Investment Bank (EIB), funded under the STAREBEI program for financing of University research. The views expressed herein are those of the authors and do not necessarily reflect the views of the European Investment Bank. We also thank EIB Economic and Research departments, participants at the EIB Third Annual Meeting, and especially EIB Co-tutor Simona Bovha Padilla and EIB Economic Advisor Maria Luisa Ferreira for offering very constructive and helpful suggestions. The paper has also benefitted from discussion with participants of the ICABEC conference (Kuala Terrengganu) and EBR Conference (University of Ljubljana). 2 Impact of Private Incidence of Corruption and Firm Ownership on Performance of Firms in Central andEastern Europe AbstractThe paper investigates how efficiency of business environment and corruption (informal payments and state capture) affect the microeconomic performance of firms. The novelty of the paper is to look at these effects in the interaction with the firm ownership. We use firm-level micro data collected by the Business Environment and Enterprise Performance Survey (BEEPS) for 27 transition countries for the period [2002][2003][2004][2005][2006][2007][2008][2009]. Among other data, BEEPS collects also information on different corruption activities at the firm-level and firm ownership. We find somehow surprising results that private firms (domestic and foreign owned) are more involved both into informal payments as well as state capture activities. Our results also reveal that foreign owned firms that are involved in informal payments are likely to benefit from these corruption practices. On the other side, state owned firms are more likely to experience negative effects of involvements in corruption practices on productivity growth. After 2004, involvement of firms in corrupt practices diminished, and that their negative impact on firm performance dissipates indicating an improvement in the stability of business environment and law enforcement.

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Section: Corruption Dimensions and Firms Participation In Corruption mentioning

confidence: 64%

Impact of Private Incidence of Corruption and Firm Ownership on Performance of Firms in Central and Eastern Europe

Blagojević

Damijan

2012

SSRN Journal

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“…During the decentralisation era, although the overall volume of FDI to the provinces and districts has increased significantly, the contribution of FDI to regional economic development remains low (KADIN, 2012). Also, the investment climate has deteriorated due to institutional problems such as corruption, overlapping regulations, over-taxation, and policy fragmentation (LPEM-UI, 2002;Kuncoro, 2006). These matters raise questions about how local governments may steer FDI to meet more effectively the needs of local people.…”

Section: Introductionmentioning

confidence: 99%

Bargaining between local governments and multinational corporations in a decentralised system of governance: the cases of Ogan Komering Ilir and Banyuwangi districts in Indonesia

Kuswanto

Hoen

Holzhacker

2017

Asia Pacific Journal of Public Administration

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“…Among the very few studies on the topic, Braun and Di Tella (2004) related inflation variability with corruption in a cross-country panel, but their main focus was on inflation and its variability and not directly on uncertainty. Similarly, Kuncoro (2006) related corruption with uncertainty in Indonesia, but, besides being located in a narrow business context, it focused largely on uncertainty about the effectiveness of bribes from the perspective of bribe givers. We seek to augment the scant literature on the corruption-uncertainty nexus in at least five significant ways.…”

Section: Introductionmentioning

confidence: 99%

Economic uncertainty and corruption: evidence from a large cross-country data set

Goel

Ram

2013

Applied Economics

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A vast amount of research has considered numerous causes and correlates of corruption. Also, there have been many studies of the consequences of various forms of uncertainty. However, exploration of the nexus between economic uncertainty and corruption appears scarce. After providing an intuitive and heuristic linkage between general economic uncertainty and corruption, this article uses a large cross-country data set to augment a fairly standard model with simple proxies for uncertainty and to investigate how economic uncertainty might affect the prevalence of corruption. In addition, a quantileregression framework is used to judge how the strength of various covariates may differ with the level of corruption. Seven main points emerge from the estimates. First, economic uncertainty is associated positively with corruption, and the relation seems to be robust across measures of uncertainty and corruption. Second, quantile-regression estimates indicate considerable parametric heterogeneity across the distribution of corruption. Third, Gross Domestic Product (GDP) per capita has the expected corruption-mitigating role. Fourth, increased political rights and civil liberties also appear to lower corruption. Fifth, greater government consumption is associated with lower corruption. Sixth, while the hyperinflation dummy lacks significance in most OLS regressions, its significance varies across the distribution of corruption. Seventh, neither police force nor government subsidies shows significance, but transition economies have more corruption.

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Corruption and Business Uncertainty in Indonesia

Cited by 66 publications

References 13 publications

Impact of Private Incidence of Corruption and Firm Ownership on Performance of Firms in Central and Eastern Europe

Impact of Private Incidence of Corruption and Firm Ownership on Performance of Firms in Central and Eastern Europe

Bargaining between local governments and multinational corporations in a decentralised system of governance: the cases of Ogan Komering Ilir and Banyuwangi districts in Indonesia

Economic uncertainty and corruption: evidence from a large cross-country data set

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