Firm-specific factors influencing the payment of bribes : the case of Egypt

Abstract

Egypt is a country with great economic potential, which is being ballasted by the widespread practice of corruption. Using data from 2004, 2005 and 2007 published by the World Bank on the Private Enterprise Survey. This paper investigates the characteristics of the firms that are involved in the payment of briberies. A probit model is used as and results show that the size of the firm, the foreign-owned company, the experience in the sector, the exports and the sales made to the public sector by the company are the factors that influence the payment of bribes. The carried out analysis conclude that sectors among Administration of Egypt are interconnected in terms of corruption, coercing companies to make payments on black in order to run their businesses.