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Institutions & Governance Tunisia

Credit: Atlantic Government

How does a bureaucrat’s term of office affect firms’ bribery costs and – in turn – economic outcomes? On the one hand, shorter terms may mitigate collusive bribes by preventing bureaucrats and firms from building trustworthy relationships. On the other hand, shorter terms may aggravate coercive bribes by shortening bureaucrats’ time horizons. To answer this question, I will use an original dataset and a natural experiment to explore how officers’ time horizons and professional relationships affect firms’ bribery and trade costs.

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