Entrepreneurship, innovation, and corruption
Efforts to control corruption increase levels of trust in the ability of the state and market institutions to reliably and impartially enforce law and the rules of trade. Such trust facilitates the development of arms-length trade and the coordination of complex economic activities. We posit that better control of corruption will also be associated with rising levels of innovation and entrepreneurship. Absent such trust, however, monitoring and other transactions cost should restrict the scale and scope of trade and thus, hamper productivity and investment in innovation and entrepreneurship. Longitudinal data from 64 nations lends support to our propositions, thus helping unpack the puzzling relationship between entrepreneurship, innovation, and corruption.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hongyi Li & Lixin Colin Xu & Heng-fu Zou, 2000.
"Corruption, Income Distribution, and Growth,"
Economics and Politics,
Wiley Blackwell, vol. 12(2), pages 155-182, 07.
- Koenker,Roger, 2005.
Cambridge University Press, number 9780521845731, December.
- Jakob Svensson, 2005. "Eight Questions about Corruption," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 19-42, Summer.
- Fabrizio Carmignani, 2005.
"Efficiency Of Institutions, Political Stability And Income Dynamics,"
- Fabrizio Carmignani, 2007. "Efficiency of Institutions, Political Stability and Income Dynamics," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(1), pages 6-30, February.
- Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
- Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September.
- Josh Lerner, 2003.
"150 Years of Patent Protection,"
Levine's Working Paper Archive
618897000000000587, David K. Levine.
- Johann Graf Lambsdorff, 2003. "How Corruption Affects Productivity," Kyklos, Wiley Blackwell, vol. 56(4), pages 457-474, November.
- Stefanie Ann Lenway & Thomas P Murtha, 1994. "The State as Strategist in International Business Research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(3), pages 513-535, September.
- Murphy, Kevin M. & Shleifer, Andrei & Vishny, Robert W., 1991.
"The Allocation of Talent: Implications for Growth,"
27692664, Harvard University Department of Economics.
- Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990. "The Allocation of Talent: Implicationsfor Growth," University of Chicago - George G. Stigler Center for Study of Economy and State 65, Chicago - Center for Study of Economy and State.
- Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990. "The Allocation of Talent: Implications for Growth," NBER Working Papers 3530, National Bureau of Economic Research, Inc.
- Beata K. Smarzynska & Shang-Jin Wei, 2000. "Corruption and Composition of Foreign Direct Investment: Firm-Level Evidence," NBER Working Papers 7969, National Bureau of Economic Research, Inc.
- Ciocchini, Francisco & Durbin, Erik & Ng, David T. C., 2003.
"Does corruption increase emerging market bond spreads?,"
Journal of Economics and Business,
Elsevier, vol. 55(5-6), pages 503-528.
- Ciocchini, Francisco & Durbin, Erik & Ng, David T.C., 2003. "Does Corruption Increase Emerging Market Bond Spreads?," Working Papers 127179, Cornell University, Department of Applied Economics and Management.
- Jerry G. Thursby & Marie C. Thursby, 2002.
"Who Is Selling the Ivory Tower? Sources of Growth in University Licensing,"
INFORMS, vol. 48(1), pages 90-104, January.
- Jerry G. Thursby & Marie C. Thursby, 2000. "Who is Selling the Ivory Tower? Sources of Growth in University Licensing," NBER Working Papers 7718, National Bureau of Economic Research, Inc.
- Robert J. Barro, 1989.
"Economic Growth in a Cross Section of Countries,"
NBER Working Papers
3120, National Bureau of Economic Research, Inc.
- Ted Baker & Eric Gedajlovic & Michael Lubatkin, 2005. "A framework for comparing entrepreneurship processes across nations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(5), pages 492-504, September.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Delmas, Magali & Tokat, Yesim, 2003. "Deregulation Process, Governance Structures and Efficiency: The U.S. Electric Utility Sector," Research Papers 1790, Stanford University, Graduate School of Business.
- Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
- Fadahunsi, Akin & Rosa, Peter, 2002. "Entrepreneurship and Illegality: Insights from the Nigerian cross-border Trade," Journal of Business Venturing, Elsevier, vol. 17(5), pages 397-429, September.
- David B. Audretsch & Roy Thurik, 2001. "Linking Entrepreneurship to Growth," OECD Science, Technology and Industry Working Papers 2001/2, OECD Publishing.
- Barro, Robert J, 1996. "Democracy and Growth," Journal of Economic Growth, Springer, vol. 1(1), pages 1-27, March.
- Iyigun, Murat F & Owen, Ann L, 1998.
"Risk, Entrepreneurship, and Human-Capital Accumulation,"
American Economic Review,
American Economic Association, vol. 88(2), pages 454-457, May.
- Murat F. Iyigun & Ann L. Owen, 1997. "Risk, entrepreneurship and human capital accumulation," Finance and Economics Discussion Series 1997-37, Board of Governors of the Federal Reserve System (U.S.).
- Acs, Zoltan J & Audretsch, David B, 1988. "Innovation in Large and Small Firms: An Empirical Analysis," American Economic Review, American Economic Association, vol. 78(4), pages 678-690, September.
- William Bygrave & Michael Hay & Emily Ng & Paul Reynolds, 2003. "Executive forum: A study of informal investing in 29 nations composing the Global Entrepreneurship Monitor," Venture Capital, Taylor & Francis Journals, vol. 5(2), pages 101-116, April.
- Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2007. "The worldwide governance indicators project : answering the critics," Policy Research Working Paper Series 4149, The World Bank.
- Alvaro Cuervo-Cazurra, 2006. "Who cares about corruption?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 807-822, November.
- Rivera-Batiz, Francisco L, 2002. "Democracy, Governance, and Economic Growth: Theory and Evidence," Review of Development Economics, Wiley Blackwell, vol. 6(2), pages 225-247, June.
- Smarzynska, Beata K. & Shang-Jin Wei, 2000. "Corruption and the composition of foreign direct investment - firm-level evidence," Policy Research Working Paper Series 2360, The World Bank.
- Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-970, December.
- Yamada, Gustavo, 1996. "Urban Informal Employment and Self-Employment in Developing Countries: Theory and Evidence," Economic Development and Cultural Change, University of Chicago Press, vol. 44(2), pages 289-314, January.
- Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 893-921, October.
- Paul R. Krugman, 1991.
"The move toward free trade zones,"
Federal Reserve Bank of Kansas City, issue Nov, pages 5-25.
- Paul R. Krugman, 1991. "The move toward free trade zones," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 7-58.
- Peter Rodriguez & Donald S Siegel & Amy Hillman & Lorraine Eden, 2006.
"Three lenses on the multinational enterprise: politics, corruption, and corporate social responsibility,"
Journal of International Business Studies,
Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 733-746, November.
- Peter Rodriguez & Donald S. Siegel & Amy Hillman & Lorraine Eden, 2006. "Three Lenses on the Multinational Enterprise: Politics, Corruption and Corporate Social Responsibility," Rensselaer Working Papers in Economics 0608, Rensselaer Polytechnic Institute, Department of Economics.
- Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-528, June.
- Zoltan J. Acs & David B. Audretsch, 2005. "Entrepreneurship and Innovation," Papers on Entrepreneurship, Growth and Public Policy 2005-21, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Yadong Luo, 2004. "An Organizational Perspective of Corruption," Management and Organization Review, International Association of Chinese Management Research, vol. 1(1), pages 119-154, June.
- Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-1171, September.
When requesting a correction, please mention this item's handle: RePEc:eee:jbvent:v:24:y:2009:i:5:p:465-476. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.