Does corruption ever help entrepreneurship?
By Nabamita Dutta, R. Sobel. 2016
239 citations recorded by the source corpus.
The current literature contains mixed results regarding the impact of corruption on entrepreneurship and economic growth. In this paper, we examine a much larger set of countries and time periods to attempt to gain insights into this relationship. In particular, the central question is whether corruption can compensate for a bad business climate. Our results are clear; corruption hurts entrepreneurship. The impact is smaller, but remains negative, when business climates are bad. This is in contrast to previous literature that suggests corruption may increase entrepreneurship under a bad business climate. We find corruption never improves entrepreneurship; it simply hurts less when business climates are not conducive to growth in the first place.
Subfields: Demography, Information Systems, Sociology and Political Science
View Paper: https://www.semanticscholar.org/paper/3f9a6d7e7dc40cda1928df5f976780f8bb58e874
How researchers see this paper
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In Demography
In Information Systems
- Vesna Mandakovic
- J. Doran
- Luciano Ciravegna
- M. O’Connor
- Nóirín McCarthy
- José Ernesto Amorós
- Pekka Stenholm
In Sociology and Political Science
Citations in the corpus
- Necessity or Opportunity? The Effects of State Fragility and Economic Development on Entrepreneurial Efforts (2019, background): “State fragility requires that rules change frequently and unpredictably, and corrupt and malfunctioning government institutions distort their enforcement (Dutta & Sobel, 2016).”
- Corruption and destructive entrepreneurship (2017, unknown): “Many studies show that corruption reduces economic growth (Mauro 1995; Bardhan 1997;Mo 2001; Fisman and Svensson 2007; Dutta and Sobel 2016) and investment (Wei 2000; Habib and Zurawicki 2002) and corrodes the social fabric of society by undermining trust in governments, market institutions, and…”
- The role of entrepreneurship in stimulating economic growth in developed and developing countries (2018, background): “…body of literature on entrepreneurial research at the country level that has explored issues such as the relationship between entrepreneurial activity and technological change (Ács & Varga, 2005) as well as impact of corruption on entrepreneurship (Dreher & Gassebner, 2013; Dutta & Sobel, 2016).”