by J. Hellman, G. Jones, and D. Kaufmann (2000)

Most studies of corruption focus on the role of politicians and bureaucrats by looking at the abuse of public office for private gain. In this brief synthesis, we summarize the research paper which shifts attention to the role of firms, suggesting that some firms possess sufficient freedom to choose a strategy of corrupt interactions with the state that maximizes their rents. We attempt to measure the costs and benefits to the firm in its interactions with the state in different environments, focusing on state capture and corruption of public procurement.

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