The effects of corruption on the human capital accumulation process: Evidence from Vietnam

Hoa, Truong Thi

doi:10.1111/ecot.12229

Cited by 9 publications

(4 citation statements)

References 32 publications

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“…In other words, our results infer when senior management spends more time on regulation and the firm is subjected to higher bribe requests, then the manager's experience becomes an insignificant factor in firm performance. This finding is in line with the literature highlighting the fact that the effect of human capital on performance is less effective in more corrupt environments (see e.g., Ehrlich and Lui 1999;Boikos 2016;Feldmann 2017;Hoa 2020). Even though spending more time with regulation increases firm performance, the manager's experience is not significant for firm performance in the high regulation regime.…”

Section: Baseline Estimationssupporting

confidence: 88%

“…It has been found that human capital (manager experience) is also an essential factor for firm performance (see e.g., Peni 2014;Staniewski 2016;Wu 2019). However, the effect of human capital on performance is less effective in more corrupt environments (see e.g., Ehrlich and Lui 1999;Boikos 2016;Feldmann 2017;Hoa 2020). Ehrlich and Lui (1999) argue that individuals invest more in political capital rather than human capital to improve their negotiation and bureaucratic power in corrupt environments.…”

Section: Hypothesismentioning

confidence: 99%

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Bribery, regulation and firm performance: evidence from a threshold model

2023

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Firm-level bribery and regulation are two of the many determinants of firm performance. However, most of the existing studies examine the direct and linear effects of bribery and regulation and overlook their indirect effects. Using firm-level data, covering 20,343 firms in 78 developing countries, and employing a threshold model, the effects of firm performance’s standard determinants vary based on the bribery and regulation levels. Our findings reveal that the impact of bribery and regulation on firm performance varies significantly depending on corruption and regulation levels. Access to external finance improves firm performance if and only if the firms are exposed to bribes and firm-level regulation is below a given threshold. Furthermore, exports boost the performance of the firms that are exposed to more bribery and spend more time with regulation than those that face lower levels of regulation and bribery. While bribery harms firm performance, our findings reveal that spending time with regulation could improve firm performance if firms are exposed to low levels of bribery. Our findings confirm the ‘sand the wheels’ hypothesis and limiting firm-level bribery improves firm performance.

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Section: Baseline Estimationssupporting

confidence: 88%

Section: Hypothesismentioning

confidence: 99%

Bribery, regulation and firm performance: evidence from a threshold model

2023

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“…(2020), El Jabri and El Khider (2020) and Belkhatab (2022) on larger samples of countries. The same applies to Hao (2019) and El Khider and Elmaataoui (2021), who will rely on the fixed-effects method and the Autoregressive Distributed Shift method respectively.…”

Section: Empirical Analysismentioning

confidence: 99%

Effect of Corruption on Human Capital in Franc Zone Countries: An Opportunity Cost Analysis

Dontsi,

Alexis,

Marielle

2024

International Journal of Scientific Advances

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The objective of this paper is to analyze the impact of corruption on human capital in African Franc zone countries. Assuming that the representative agent is rational, we develop a theoretical model in which effort, the real component of the human capital accumulation process, encompasses learning time, the learner’s personal resources, and the educational public good. The learner makes a trade-off between effort and corruption according to the opportunity cost of each option. Thus, in an environment where corruption (large and small) is endemic and where there are very few sanction mechanisms, the learner considers it rational to bribe at the expense of effort. Empirical analysis shows that a drop in the corruption perception index (reflecting an increase in corruption) of one-point leads to a drop in the human capital index of 0.175 percentage points. On the other hand, the impact is positive for public spending on education, official development assistance, real GDP per capita, and the management ratio. These variables reduce the opportunity cost of the effort. A number of recommendations are put forward with a view to reducing the cost of effort and increasing the cost of corruption.

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“…For instance, Nguyen et al (2017) revealed that the standard of primary education in Vietnam is adversely impacted by corruption. Furthermore, human capital could be poorly developed because of corruption in Vietnam (Hoa, 2019). With a focus on 185 countries, Achim (2017) supported the argument that the push for improved human capital is inhibited by corruption across countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Corruption: Governance challenge towards reducing unemployment in Nigeria

Fagbemi

Fajingbesi²,

Osinubi

2023

Journal of Public Affairs

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The study examines the possibility of having a very low rate of unemployment in Nigeria, if there is a reduced rate of corruption in the long‐term. While using cointegration regressions and Vector Error Correction Mechanism (VECM) over the period 1996–2020, it is affirmed that corruption could increase unemployment rate in the long run. The two corruption indicators employed (control of corruption and corruption index) are found to have a substantial effect on unemployment rate. Further evidence confirms that corruption and unemployment are cyclically interdependent. Findings indeed stress that a high level of corruption is harmful to employment growth. On the other hand, in the absence of sufficient job opportunities, rent‐seeking government officials would be more interested in collecting bribes from job seekers, which results in sustained unlawful practices among the public officials. Thus, adopting effective corruption‐control measures is critical. It is therefore suggested that to effectively tackle corruption incidents, there should be incentives for citizens or public officials to report bribery and the process of reporting corruption incidents should be further simplified. Strengthening anti‐corruption agencies and developing a sound legal framework that promotes a culture of lawfulness and impeccable practices in the public sector are central.

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The effects of corruption on the human capital accumulation process: Evidence from Vietnam

Cited by 9 publications

References 32 publications

Bribery, regulation and firm performance: evidence from a threshold model

Bribery, regulation and firm performance: evidence from a threshold model

Effect of Corruption on Human Capital in Franc Zone Countries: An Opportunity Cost Analysis

Corruption: Governance challenge towards reducing unemployment in Nigeria

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