Abstract:
This paper empirically analyzes the main microeconomic determinants of two
forms of corruption supply, administrative corruption and state capture, by
Maghrebi firms. This study is based on a new database of nearly 600 Algerian,
Moroccan and Tunisian firms. I show that tax evasion is a major factor in
the engagement of firms in administrative corruption. The latter increases with
the share of sales hidden by the firm as long as it is below half of total sales, and
slightly decreases thereafter. State capture is fostered by a failing enforcement
of property and contract rights. Interestingly, less competitive firms appear to
engage more in both forms of corruption than the most dynamic ones. After assessing
the robustness of my empirical results, I draw a comparison of the factors of corruption in North Africa, Uganda and transition countries.