摘要：Do the formal and informal sectors of production react symmetrically to higherfrequency of corruption? The theoretical model developed in the paper qualifies the answerand explains certain empirical observations. In the informal sector while an increasedfrequency of corruption increases the entry cost, in the formal sector the effect remainsuncertain. While abundance of firms definitely falls in the formal sector, in the informalsector it may either rise or fall in the economies with high share of formal sectoremployment and unambiguously falls in the economies with low share of formal sectoremployment. Finally, while the firm size distribution shifts towards relatively larger firms inthe formal sector, in the informal sector the effect on firm size distribution remains uncertainin the economies with high share of formal sector employment and it shifts towards smallersize firms in the economies with low share of formal sector employment.
关键词：Corruption; Entry cost; Firm size distribution; Formal and informal sectors
