What Firms Must Pay Bribes and How Much? An Empirical Study of Small and Medium Enterprises in Vietnam

  • Thi Thuong Vu
  • Chon Van LeEmail author
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 9978)


This paper uses panel data from the Small and Medium Enterprise Survey in Vietnam from 2005 to 2013 to investigate the incidence and size of corruption in Vietnam. The Heckman’s two-step model is employed to take into account censored nature of the data on bribes and sample selection bias. We find strong evidence that the propensity to bribe as well as bribe amounts are highly positively correlated with interaction level with government officials, firms’ ability to pay, and regulatory-type burdens imposed on firms. In addition, firms without official business registration licenses are more likely to avoid paying the informal costs. These results are robust when lagged values of profit are used as instruments for profit.


Bribery Government bureaucrats Small and medium enterprises 

JEL Codes

C34 D22 G38 


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Copyright information

© Springer International Publishing AG 2016

Authors and Affiliations

  1. 1.University of DanangKontumVietnam
  2. 2.International University - VNU HCMCHo Chi Minh CityVietnam

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