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Government efficiency and corruption: A country-level study with implications for entrepreneurship

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  • Mohamadi, Ashkan
  • Peltonen, Juhana
  • Wincent, Joakim

Abstract

If and how the efficiency of governments plays a role in determining relationships between corruption and entrepreneurship has not been examined at length. The empirical findings on control of corruption are inconclusive, and our knowledge regarding the moderation of efficient or less-efficient governments is rather limited. Using a multisource panel dataset of 59 countries, we find that any conclusion suggesting that corruption is universally good or bad for entrepreneurship may risk being overstated because the degree to which governments are efficient moderates the nonlinear effects of control of corruption on entrepreneurship.

Suggested Citation

  • Mohamadi, Ashkan & Peltonen, Juhana & Wincent, Joakim, 2017. "Government efficiency and corruption: A country-level study with implications for entrepreneurship," Journal of Business Venturing Insights, Elsevier, vol. 8(C), pages 50-55.
    • Handle: RePEc:eee:jobuve:v:8:y:2017:i:c:p:50-55
    DOI: 10.1016/j.jbvi.2017.06.002
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    Cited by:

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    3. Nir Kshetri, 2023. "The nature and sources of international variation in formal institutions related to initial coin offerings: preliminary findings and a research agenda," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-38, December.
    4. Michael Polemis, 2019. "Is the effect of corruption on entrepreneurial activity nonmonotonic? A semi-parametric panel data analysis," Economics Bulletin, AccessEcon, vol. 39(4), pages 2976-2989.
    5. Chen, Shaojian & Mao, Hui & Feng, Zongxian, 2020. "Political uncertainty and firm entry: Evidence from Chinese manufacturing industries," Journal of Business Research, Elsevier, vol. 120(C), pages 16-30.
    6. Jean‐Claude Kouladoum, 2023. "Technology and control of corruption in Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1163-1180, August.
    7. Fredström, Ashkan & Peltonen, Juhana & Wincent, Joakim, 2021. "A country-level institutional perspective on entrepreneurship productivity: The effects of informal economy and regulation," Journal of Business Venturing, Elsevier, vol. 36(5).
    8. Polemis, Michael L. & Stengos, Thanasis, 2020. "The impact of regulatory quality on business venturing: A semi-parametric approach," Economic Analysis and Policy, Elsevier, vol. 67(C), pages 29-36.
    9. Daniel Alonso‐Martínez & Valentina De Marchi & Eleonora Di Maria, 2020. "Which country characteristics support corporate social performance?," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 670-684, July.

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