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Corruption's asymmetric impacts on firm innovation

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  • Paunov, Caroline

Abstract

This paper documents the impacts of corruption on smaller- and larger-sized firms' adoption of quality certificates and patents. Using firm-level data for 48 developing and emerging countries, I analyze whether corruption's impacts are stronger on firms operating in industries that use quality certificates and patents more intensively. My results show that corruption reduces the likelihood that firms in these industries obtain quality certificates. Corruption affects particularly smaller firms but has no impacts on exporters or foreign- and publicly-owned firms. While corruption does not reduce patenting, it lowers machinery investments for innovation. By contrast, more reliable business environments foster firms' adoption of quality certificates.

Suggested Citation

  • Paunov, Caroline, 2016. "Corruption's asymmetric impacts on firm innovation," Journal of Development Economics, Elsevier, vol. 118(C), pages 216-231.
  • Handle: RePEc:eee:deveco:v:118:y:2016:i:c:p:216-231
    DOI: 10.1016/j.jdeveco.2015.07.006
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    References listed on IDEAS

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    Cited by:

    1. Stefan Daniel Armeanu & Georgeta Vintila & Stefan Cristian Gherghina, 2017. "A Cross-Country Empirical Study Towards the Impact of Following ISO Management System Standards on Euro-Area Economic Confidence," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(44), pages 144-144, February.
    2. Paunov, Caroline & Rollo, Valentina, 2016. "Has the Internet Fostered Inclusive Innovation in the Developing World?," World Development, Elsevier, vol. 78(C), pages 587-609.
    3. Axel Demenet & Hoang-Anh Ho & Sarah Morcillo, 2017. "Firm-level corruption: Unravelling sand from grease," WIDER Working Paper Series 123, World Institute for Development Economic Research (UNU-WIDER).
    4. Neda Trifkovic, 2016. "Private standards and labour productivity in the food sector in Viet Nam," WIDER Working Paper Series 163, World Institute for Development Economic Research (UNU-WIDER).
    5. repec:kap:sbusec:v:48:y:2017:i:3:d:10.1007_s11187-016-9802-1 is not listed on IDEAS
    6. Antonio Ciccone & Elias Papaioannou, 2016. "Estimating Cross-Industry Cross-Country Interaction Models Using Benchmark Industry Characteristics," NBER Working Papers 22368, National Bureau of Economic Research, Inc.
    7. repec:eee:jcecon:v:45:y:2017:i:3:p:498-519 is not listed on IDEAS
    8. repec:spr:jknowl:v:9:y:2018:i:3:d:10.1007_s13132-016-0384-6 is not listed on IDEAS

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