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Service offshoring and corruption: Do Firms Escape Corrupt Countries?
Örebro Universitet.
Södertörn University, School of Social Sciences, Economics. Ratio Institute.
2015 (English)In: Journal of Industry, Competition and Trade, ISSN 1566-1679, E-ISSN 1573-7012, Vol. 15, no 4, 363-381 p.Article in journal (Refereed) Published
Abstract [en]

We analyze how service offshoring by Swedish firms is affected by corruption in source countries. The results suggest that firms avoid corrupt countries and that corruption reduces the volume of service offshoring. Analyzing firm heterogeneity, we find that large and internationalized firms are the ones that are the most sensitive to corruption. In addition, sensitivity to corruption tends to increase with falling income in source countries. These results suggest that the gains from reduced corruption may be the greatest for poor countries. 

Place, publisher, year, edition, pages
Springer, 2015. Vol. 15, no 4, 363-381 p.
Keyword [en]
Corruption; Services; Offshoring; Gravity model; Firm level data
National Category
Research subject
Politics, Economy and the Organization of Society
URN: urn:nbn:se:sh:diva-28411DOI: 10.1007/s10842-015-0197-5OAI: diva2:857274
Available from: 2015-09-28 Created: 2015-09-28 Last updated: 2015-11-16Bibliographically approved

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