Public Sector Corruption and Trust in the Private Sector

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Gillanders , R & Neselevska , O 2017 , ' Public Sector Corruption and Trust in the Private Sector ' , Journal of International Development , vol. 30 , no. 8 , pp. 1288-1317 . https://doi.org/10.1002/jid.3306

Title: Public Sector Corruption and Trust in the Private Sector
Author: Gillanders, Robert; Neselevska, Olga
Contributor: Hanken School of Economics, Economics, Helsinki
Hanken School of Economics, HCCG - Hanken Centre for Corporate Governance, Helsinki
Belongs to series: Journal of International Development
ISSN: 0954-1748
Abstract: Using Afrobarometer data, we show that experiencing bribery in the course of one's interactions with the public sector lowers one's trust in big private corporations, small businesses and local traders. As trust in market institutions is vital to the efficient functioning of an economy, our findings point to a previously unknown and potentially substantial cost of corruption. This relationship is evident even when we control for perceptions of corruption. Our findings are not driven by corruption lowering interpersonal trust. Having to pay a bribe for household services is the corrupt interaction most strongly associated with the decline in private sector trust.
Date: 2017-08-21
Subject: 511 Economics
bribery
corruption
corruption experiences
corruption perceptions
private sector trust
sub-Saharan Africa
trust
KOTA2017
PREM2018_01
0 - Not open access
1 - Self archived
https://helda.helsinki.fi/dhanken/handle/10227/406694
1- Minst en av författarna har en utländsk affiliation
1- Publicerad utomlands
0- Ingen affiliation med ett företag
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