Abstract
ABSTRACT This study investigates whether the impact of firm-level corruption on growth varies based on origin of the firm. More specifically, I examine how corruption in the business environment affects growth for privatized former state-owned enterprises (SOEs) and originally private firms in transition economies. Employing Business Environment and Enterprise Performance Survey (BEEPS) data and using a sample of 15,103 unique firms in 30 Eastern European and Central Asian countries, I find that corruption hampers growth for private firms, but it is not detrimental to privatized firms’ growth. In fact, some evidence suggests that corruption helps privatized firms growing faster.
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