How does bribery affect a firm’s future growth? Empirical evidence from transition economies

Overview of bribery giving behaviors: Determinants and influence on firm performance

“…In another study, R. Wu (2019) also shows that bribery was found to have a significantly negative impact on both innovation capability and productivity of the observed firms. These negative effects of bribery on innovation capability and productivity are also confirmed in another paper conducted by R. Wu and Meeks (2020) in transition economies in Central Asia and Eastern Europe.…”

“…Similarly, Williams et al (2016) also report that productivity growth rates in firms that appreciate bribery payment are higher than other firms. Supporting for a positive effect of bribery payment, R. Wu and Meeks (2020), using data from transition economies in Central Asia and Eastern Europe, find that paying bribery could increase a firm's production output and employment growth significantly, and bribing firms are more likely to bribe again three years later. The previous study also shows the positive effect of paying bribes on innovation engagement.…”

Rule of Low as Factor of Investments in Ukraine

“…Mariia Blikhar,Mariana Golynska,Bogdana Shandra,Oksana Matviienko,Viktoriia Svyshcho 207 The obtained results allow us to state that property rights had a stronger impact on investments in the 2000s when state property was privatized and consolidated. The inverse dependence on the fight against corruption can mean problems with public investments, like Russia (Zakharov, 2019), or gain from accelerating investment decisions (Dirdi, 2013;Wu et al, 2020) or the ways to circumvent stringent regulatory restrictions (Krammer, 2013). On the other hand, the obtained results may reflect the domestic investment process's specifics, which remain opaque and dependent on various schemes.…”

“…This feature does not indicate the high quality of the investment process, which does not contribute to overcoming the economy's raw material orientation. It can be assumed that the departure from the raw material model will affect the nature of the relationship between corruption and investments because innovations and investments in the technology sector mainly require the restriction of corruption (Fu, 2019;Wu et al, 2020).…”

“…Another study from Eastern Europe and Central Asia for the period of 2002-2008 found that bribery could increase a firm's output and employment growth significantly while deterring that firm's labor productivity and innovation (Wu and Meeks, 2020). The stimulating effect of corruption is due to the reduction of time for access to productive resources.…”