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International corruption and its impacts across entrepreneurship types

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  • Rajeev K. Goel
  • James W. Saunoris

Abstract

Using a large cross‐country sample, this paper examines the impact of corruption on entrepreneurial activities by uniquely addressing two questions: (a) Does the impact of corruption on entrepreneurship vary across entrepreneurship type? (b) How does the effect of corruption differ across nations with varying prevalence of entrepreneurship? Considering three dimensions of entrepreneurship, nascent entrepreneurship, new business owners, and established new business owners, results, accounting for possible two‐way causality, show that entrepreneurship is negatively affected by corruption across entrepreneurship types, with differences in the relative magnitudes of effects. This sanding effect of corruption, however, varies across the prevalence of corruption and switches to greasing for nascent entrepreneurs.

Suggested Citation

  • Rajeev K. Goel & James W. Saunoris, 2019. "International corruption and its impacts across entrepreneurship types," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 40(5), pages 475-487, July.
    • Handle: RePEc:wly:mgtdec:v:40:y:2019:i:5:p:475-487
    DOI: 10.1002/mde.3017
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    Citations

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    Cited by:

    1. Folorunsho M. Ajide, 2023. "Institutions and Entrepreneurship in Africa: Does Democracy Matter?," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(3), pages 553-589, November.
    2. Andrew Smith & Graham Brownlow, 2023. "Informal Institutions as Inhibitors of Rent-Seeking Entrepreneurship: Evidence From U.S. Legal History," Entrepreneurship Theory and Practice, , vol. 47(6), pages 2323-2346, November.
    3. Angelo Cavallo & Alessandra Colombelli & Elettra D’Amico & Emilio Paolucci, 2023. "“Balanced” or “polarized” entrepreneurial ecosystem types? Evidence from Italy," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1860-1889, October.
    4. Rajeev K. Goel & Michael A. Nelson, 2021. "Corrupt encounters of the fairer sex: female entrepreneurs and their corruption perceptions/experience," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1973-1994, December.
    5. Rajeev K. Goel & James W. Saunoris, 2020. "Market exit of firms: Does corruption act as grease or sand?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(8), pages 1539-1548, December.
    6. 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.
    7. Aziz N. Berdiev & James W. Saunoris, 2021. "Do Disease Epidemics Stimulate or Repress Entrepreneurial Activity?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 47(4), pages 464-486, October.
    8. 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.
    9. Rajeev K. Goel & Michael A. Nelson, 2023. "Which political regimes foster entrepreneurship? An international examination," The Journal of Technology Transfer, Springer, vol. 48(1), pages 126-146, February.

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