IDEAS home Printed from https://ideas.repec.org/p/hal/cesptp/halshs-00595048.html
   My bibliography  Save this paper

New products and corruption: evidence from Indian firms

Author

Listed:
  • Felipe Starosta de Waldemar

    () (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

It has been shown that corruption has a negative effect on firm productivity, but what about its impact on product innovation ? We find that corruption, functioning as a bribe tax, diminishes the probability of new product introduction. We use a World Bank Enterprise Survey from India in 2005, with 1600 firms answering if they introduced a new product to the firm and on the average quantity of bribe paid by firms. Controlling for innovation determinants, firm characteristics, location choice, multi-product firms and other business environment variables, sector-location bribe averages have a negative and significant impact on product innovation.

Suggested Citation

  • Felipe Starosta de Waldemar, 2011. "New products and corruption: evidence from Indian firms," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00595048, HAL.
  • Handle: RePEc:hal:cesptp:halshs-00595048
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00595048
    as

    Download full text from publisher

    File URL: https://halshs.archives-ouvertes.fr/halshs-00595048/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Micheline Goedhuys & Pierre Mohnen & Tamer Taha, 2016. "Corruption, innovation and firm growth: firm-level evidence from Egypt and Tunisia," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 299-322, December.
    2. Fang Wang & Xiaoyong Dai, 2020. "Regulation and product innovation: the intermediate role of resource reallocation," Journal of Evolutionary Economics, Springer, vol. 30(4), pages 1035-1061, September.
    3. Habiyaremye, Alexis & Raymond, Wladimir, 2013. "Transnational corruption and innovation in transition economies," MERIT Working Papers 2013-050, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Stefan Borsky & Esther Blanco, 2014. "Setting one voluntary standard in a heterogeneous Europe - EMAS, corruption and stringency of environmental regulations," Working Papers 2014-29, Faculty of Economics and Statistics, University of Innsbruck.
    5. Rodríguez-Pose, Andrés & Zhang, Min, 2020. "The cost of weak institutions for innovation in China," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    6. Eugene E. Ezebilo & Francis Odhuno & Philip Kavan, 2019. "The Perceived Impact of Public Sector Corruption on Economic Performance of Micro, Small, and Medium Enterprises in a Developing Country," Economies, MDPI, Open Access Journal, vol. 7(3), pages 1-17, August.
    7. Valerija Botrić & Ljiljana Božić, 2015. "Innovators' vs Non-innovators' perceptions of corruption in European post-transition economies," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 8(3), pages 47-58, December.
    8. Sdiri, Hanen & Ayadi, Mohamed, 2016. "Does innovation foster or mitigate the corruption obstacle? Firm-level evidence from Tunisia," MPRA Paper 71088, University Library of Munich, Germany.
    9. Fang Wang & Xiaoyong Dai, 0. "Regulation and product innovation: the intermediate role of resource reallocation," Journal of Evolutionary Economics, Springer, vol. 0, pages 1-27.
    10. Chei Bukari & Emm anuel Atta Anaman, 0. "Corruption and firm innovation: a grease or sand in the wheels of commerce? Evidence from lower-middle and upper-middle income economies," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 0, pages 1-36.
    11. Elchin Aghazada & Gaygysyz Ashyrov, 2021. "Corruption And Firm Innovation: Evidence From Post-Soviet Countries," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 129, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    12. DeMaria, Federica & Franco, Chiara & Solferino, Nazaria, 2015. "Corruption and innovation: the mediating role of trade," AICCON Working Papers 139-2015, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    13. Xu, Gang & Yano, Go, 2017. "How does anti-corruption affect corporate innovation? Evidence from recent anti-corruption efforts in China," Journal of Comparative Economics, Elsevier, vol. 45(3), pages 498-519.
    14. Syed Muhammad Imran & Hafeez Ur Rehman & Rana Ejaz Ali Khan, 2020. "Effect of corruption on firm level innovation: Evidence from Pakistan," Economics and Business Letters, Oviedo University Press, vol. 9(1), pages 41-47.
    15. Nguyen, Ngoc Anh & Doan, Quang Hung & Nguyen, Ngoc Minh & Tran-Nam, Binh, 2016. "The impact of petty corruption on firm innovation in Vietnam," MPRA Paper 71902, University Library of Munich, Germany.
    16. Jun Wen & Mingbo Zheng & Gen-Fu Feng & Sunwu Winfred Chen & Chun-Ping Chang, 2018. "Corruption And Innovation: Linear And Nonlinear Investigations Of Oecd Countries," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(01), pages 103-129, July.

    More about this item

    Keywords

    Innovation; corruption; firm performance.; performance de la firme.;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:cesptp:halshs-00595048. 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: (CCSD). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.