IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v62y2024i3d10.1007_s11187-023-00802-1.html
   My bibliography  Save this article

Entry-regulation and corruption: grease or sand in the wheels of entrepreneurship? Fresh evidence according to entrepreneurial motives

Author

Listed:
  • Marcus Dejardin

    (Université catholique de Louvain and Université de Namur)

  • Hélène Laurent

    (Université de Namur and Aix Marseille Univ, CNRS, AMSE)

Abstract

The relationship between entry-regulation, corruption, and entrepreneurship is controversial in the literature. Using a broad cross-country dataset to deepen the investigation, this paper distinguishes opportunity and necessity-motivated entrepreneurship in different development contexts. Corruption might grease the wheels of ineffective administrative machinery in developing countries with heavy entry-regulation. Yet, the marginal effect of corruption will generally be non-significant in other developing countries and in developed countries. Moreover, our results suggest that corruption deters opportunity-motivated entrepreneurship—the type of entrepreneurship that may contribute the most to productivity, economic growth, and development—in developed countries.

Suggested Citation

  • Marcus Dejardin & Hélène Laurent, 2024. "Entry-regulation and corruption: grease or sand in the wheels of entrepreneurship? Fresh evidence according to entrepreneurial motives," Small Business Economics, Springer, vol. 62(3), pages 1223-1272, March.
    • Handle: RePEc:kap:sbusec:v:62:y:2024:i:3:d:10.1007_s11187-023-00802-1
    DOI: 10.1007/s11187-023-00802-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11187-023-00802-1
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11187-023-00802-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Entrepreneurship; Corruption; Regulation; Doing business; “Grease the wheels”; “Sand the wheels”; Opportunity; Necessity; Entrepreneurial motives;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:62:y:2024:i:3:d:10.1007_s11187-023-00802-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.