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Entrepreneurship and its Link to Corruption: Assessment with the Most Recent World and Country-Group Data

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  • Driouchi, Ahmed
  • Gamar, Alae

Abstract

Entrepreneurship is an important intangible asset of nations. The relatively recent progress in its measurement, mainly with the Global Entrepreneurship Development Index (GEDI), suggests that previous questions related to its determinants and mainly its relationship to corruption namely the Corruption Perception Index (CPI) be re-addressed. The objective of the present paper is to assess the links between GEDI and CPI using the most recent (2013-2014) published data on world countries included in the GEDI. The relationships are estimated overall countries included in the GEDI and over groups of countries in relation to geographical continents and other subgrouping of economies. The attained results show consistently the positive effect of corruption reduction on GEDI and thus the positive relationship between an intangible good that is entrepreneurship and an intangible bad that is corruption. These results confirm that the recent available data are supportive of anti-corruption policies that are likely to favor the growth of entrepreneurial activities with promoting market development and hence ensuring the growth of both tangible and intangible components of the wealth of nations.

Suggested Citation

  • Driouchi, Ahmed & Gamar, Alae, 2015. "Entrepreneurship and its Link to Corruption: Assessment with the Most Recent World and Country-Group Data," MPRA Paper 62271, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:62271
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    References listed on IDEAS

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    1. Acs, Zoltan J. & Szerb, László, 2009. "The Global Entrepreneurship Index (GEINDEX)," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 5(5), pages 341-435, August.
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    6. Vartuhí Tonoyan & Robert Strohmeyer & Mohsin Habib & Manfred Perlitz, 2010. "Corruption and Entrepreneurship: How Formal and Informal Institutions Shape Small Firm Behavior in Transition and Mature Market Economies," Entrepreneurship Theory and Practice, , vol. 34(5), pages 803-832, September.
    7. Zoltan J. Acs & Attila Varga, 2008. "Entrepreneurship, Agglomeration and Technological Change," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 24, pages 341-352, Edward Elgar Publishing.
    8. Acs, Zoltán J & Audretsch, David B & Evans, David S, 1994. "Why Does the Self-Employment Rate Vary Across Countries and Over Time?," CEPR Discussion Papers 871, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Josée St-Pierre & Luc Foleu & Georges Abdul-Nour & Serge Nomo, 2015. "Les Freins Au Développement Des Pme Camerounaises : Qu’En Pensent Les Entrepreneurs?," Post-Print hal-01703201, HAL.

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    More about this item

    Keywords

    Keywords: Entrepreneurship; Corruption; Determinants; Anti-corruption policies;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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