Monday, April 12, 2010

Biting into Profits

A new study shows that Mexican businesses spend 10 percent of their profits on bribes, which amounts to somewhere between 7 and 9 percent of the GDP. The article linked above is very brief, but this number should be picked at a little bit. What are they spending the bribes on? Bids for contracts? Payments to the police or the local government to protect them? Regulators? How do the bribery payments vary for different types of businesses?

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