Estonian firms’ perspective on anti-corruption measures: factor analysis approach

Abstract

This paper examines firms’ perspectives on anti-corruption measures, addressing a gap in the literature where firms’ perspectives are typically not surveyed. However, the firm-level approach provides more detailed insights than macro-level (country) or micro-level (person) analyses. The research is based on publicly available survey data on corruption perceptions among Estonian firms. Drawing on survey data from 531 Estonian firms the research employs exploratory factor analysis to categorise firms’ preferences for 11 anti-corruption measures, guided by Rational Choice Theory. The results reveal that firms favour stricter penalties for corruption (50% of firms’ answers), followed by enhanced transparency in political party financing (23%), police strengthening (15%), and raising awareness among officials (8%). Exploratory factor analysis offers a typology of anti-corruption measures from the perspective of firms—an angle that is less commonly addressed in corruption research. The analysis identifies four types of anti-corruption measures: Institutional-level Awareness raising (officials, politicians, entrepreneurs), Citizen-level Awareness raising (citizens, youth), Normative (lobbying and party funding), and Regulative (regulations). These types of anti-corruption measures help policymakers, researchers, and survey designers focus primarily on the four distinct areas.