Firm-Level Productivity and Corruption: A Firm-Level Analysis on Emerging Markets
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I document significant heterogeneity in the marginal effect of corruption on the underlying fixed costs of firm-level market participation, which in turn drives selection across firms into trade participation. The effect is particularly pronounced for domestically-owned and foreign affiliate firms engaged in trade, suggesting that underlying trade-related fixed costs are the most vulnerable parameters with respect to variation in host-country corruption.">