In this paper, we examine the relationship between corruption and firm export
performance in Zimbabwe. Using a new panel data set of manufacturing and service
firms from World Bank Enterprise survey and a methodology that relies on within-firm
variation, we show that corruption increases the probability of exporting indirectly
through intermediaries and decreases the probability of exporting directly. This result
highlight that corruption is a cost to the economy in the absence of intermediaries.
In addition, it highlights the importance of strong institutions that reduce corruption
for business dynamism and economic growth.