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Do entrepreneurial firms suffer more from bribery? An empirical study of businesses in Vietnam

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  • Thang V. Nguyen
  • Ngoc T. B. Le
  • Ha L. H. Dinh
  • Huong T. L. Pham

Abstract

Empirical research on firm corruption has reported inconclusive findings on bribe–growth relationship at the firm level. Scholars have proposed a contingency approach, but a framework for identifying contingent factors has not been developed. This study employs a bargaining power framework to examine how firm characteristics moderate the bribe–growth relationship. Based on data from a sample of garment and textile firms in Vietnam, the research shows that firms with state ownership and export markets enjoy greater net benefits from bribes. By contrast, privately owned, micro and small firms are most harshly hit by bribes. The results suggest that engaging in bribery is not an answer for private, small firms even in bribery-prone environments like Vietnam. Rather, these firms should develop their bargaining power in order to minimise harms from bribery.

Suggested Citation

  • Thang V. Nguyen & Ngoc T. B. Le & Ha L. H. Dinh & Huong T. L. Pham, 2020. "Do entrepreneurial firms suffer more from bribery? An empirical study of businesses in Vietnam," Post-Communist Economies, Taylor & Francis Journals, vol. 32(7), pages 877-903, October.
    • Handle: RePEc:taf:pocoec:v:32:y:2020:i:7:p:877-903
    DOI: 10.1080/14631377.2020.1722585
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    Cited by:

    1. Ha, Le Thanh & Thanh, To Trung & Thang, Doan Ngoc & Anh, Pham Thi Hoang, 2021. "Bribery, export decisions, and institutional constraints: Evidence from cross-country firm-level data," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 585-612.
    2. Ha, Le Thanh & Dung, Hoang Phuong & Thanh, To Trung, 2023. "Bribery, global value chain decisions, and institutional constraints: Evidence from a cross-country firm-level data," International Economics, Elsevier, vol. 173(C), pages 119-142.
    3. Nam Pham Xuan & Thanh Ha Le, 2023. "Bribery and firm survival in Vietnam: Moderating effects of market competition, credit, and institutional constraints," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 1242-1269, May.
    4. Ha, Le Thanh & Nam, Pham Xuan & Thanh, To Trung, 2021. "Effects of Bribery on Firms' Environmental Innovation Adoption in Vietnam: Mediating Roles of Firms' Bargaining Power and Credit and Institutional Constraints," Ecological Economics, Elsevier, vol. 185(C).

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