Does corruption grease or sand the wheels of growth?

Méon, Pierre-Guillaume; Sekkat, Khalid

doi:10.1007/s11127-005-3988-0

Cited by 821 publications

(608 citation statements)

References 32 publications

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“…Furthermore, we find inspiration from a large literature on corruption that undermines the strength of public institutions and hampers economic growth and development (and vice-versa). Classical references include Shleifer and Vishny (1993), Mauro (1995), Bardhan (1997) and Meon and Sekkat (2005). Our work is also related to the empirical analyses that use microdata to investigate the determinants of corruption (Swamy et al, 2001;Svensson, 2003;Mocan, 2008).…”

Section: Introductionmentioning

confidence: 99%

Corruption and the effects of economic freedom

Pieroni

d’Agostino

2013

European Journal of Political Economy

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The predictions that economic freedom is beneficial in reducing corruption have not been found to be universally robust in empirical studies. The present work reviews this relationship by using firms' data in a cross-country survey and argues that approaches using aggregated macro data have not been able to explain it appropriately. We model cross-country variations of the microfounded economic freedom-corruption relationship using multilevel models. Additionally, we analyze this relationship by disentangling the determinants for several components of economic freedom because not all areas affect corruption equally. The results show that the extent of the macro-effects on the measures of (micro)economic freedom for corruption, identified by the degree of economic development of a country, can explain why a lack of competition policies and government regulations may yield more corruption. Estimations for Africa and transition economy subsamples confirm our conjectures.JEL : H10; H11; H50; K20; O5

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Section: Introductionmentioning

confidence: 99%

Corruption and the effects of economic freedom

Pieroni

d’Agostino

2013

European Journal of Political Economy

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“…Less political constraint and longer legitimate tradition also decrease the potential for bribery. Interestingly, faster growing GDP results in more briberies; this growth paradox clearly contradicts the traditional studies (Keefer and Knack, 1997;Campos et al, 1999;Kaufmann and Wei, 1999;Méon and Sekkat, 2005) which argues corruption hinders a country's development. The turmoil during the 2007-2009 global financial crisis increased the probability that firms will bribe.…”

Section: Resultsmentioning

confidence: 82%

Why do firms bribe? An empirical study in BRICS economies from 2002 to 2012

2016

Econom. bus. letters

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This article empirically studies why manufacturing firms bribe the government officials. Firmlevel data focusing on the five BRICS countries (Brazil, Russia, India, China, and South Africa) was acquired from an Enterprise Survey conducted by the World Bank between 2002 and 2012. The BRICS countries represent typical emerging world economies. We acquired country-level data from multiple sources. We then studied both firm-level and country-level reasons why firms bribe and how much money they spend in bribing. We found that smaller size, slower expansion, and more infrastructural defects significantly increase bribery probability. Bribery also tends to occur more frequently in countries with faster development and more political rigidity. The 2007-2009 financial crisis also encouraged bribery.

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“…One strand of the literature suggests that corruption trend to take place in a transition economy with a low quality of governance and can, therefore, reduce the inconvenience of such a transition economy. This view claims that corruption is like "grease" for a firm's innovation [15] and helps companies to overcome bureaucratic processes, complex market access regulations and improve their entry strategies and investment selections. Another strand stresses that corruption is the "sand" for a firm's growth.…”

Section: Innovation and Corruption In Privately Owned Smcsmentioning

confidence: 99%

Corruption and Technological Innovation in Private Small-Medium Scale Companies: Does Female Top Management Play a Role?

2018

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Common acts of corruption such as bribery and informal payments are virtually illegal everywhere and prevalent in every corner of the world. This paper aims to contribute to the literature by considering the influences of corruption and female top management on the likelihood of technological innovation by using a nationwide survey and a sample of private small-medium sized companies (SMCs) in China. Interestingly, we find that female top managers have less enthusiasm for innovation than their male counterparts. Corruption, when measured by informal payments, poses a positive effect on the possibility of innovation after controlling for firm-level characteristics. However, female executives may weaken the positive innovation effects caused by corruption. Furthermore, one of our implied findings is that a firm with a female top manager is less likely to engage in corruption because this may raise the costs of doing business without any benefits for innovation. The results collectively illustrate the role that female top management and corrupt actions have in shaping innovative activities of private SMCs, and suggest that bribe-combating actions in firms are necessary, such as a framework for rationalizing the proportion of female executives involved in management.

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Does corruption grease or sand the wheels of growth?

Cited by 821 publications

References 32 publications

Corruption and the effects of economic freedom

Corruption and the effects of economic freedom

Why do firms bribe? An empirical study in BRICS economies from 2002 to 2012

Corruption and Technological Innovation in Private Small-Medium Scale Companies: Does Female Top Management Play a Role?

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