Correlates of bribe giving in international business

Abstract

Using indices of bribe for 19 countries, this study examines the determinants of bribe paying in international business. There is a strong positive correlation between countries where bribe taking is highly prevalent and those countries that are most likely to offer bribes. The propensity to give bribes is determined by economic factors such as per capita income and degree of economic freedom in the country, cultural factors such as power distance and masculinity; and legal regulatory factors such as accounting and tax treatment of bribes. It appears that, to eliminate international bribery, the supply side needs to be addressed in addition to the demand for bribes.