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Greasing the wheels of entrepreneurship? A complement according to entrepreneurial motives

Listed author(s):
  • Marcus Dejardin

    ()

    (Centre de recherches en Economie Regionale et Politique Economique, UNamur)

  • Helene Laurent

    ()

    (Centre de recherches en Economie Regionale et Politique Economique, UNamur)

We consider the effects that corruption and regulation may have on entrepreneurship according to the underlying motivation compelling an individual to open a business. By doing this, we document the idea, widely studied within the context of economic growth, that corruption may be beneficial or detrimental according to its interrelationships with regulation. More specifically, we complement the findings by Dreher and Gassebner (2013) supporting the assumption that corruption “greases the wheels” (vs “sands the wheel”) of strict regulation for early-stage firms. We provide evidence that opportunity-driven entrepreneurs are much more affected by corruption and regulation than necessity-driven ones.

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File URL: http://www.fundp.ac.be/eco/economie/recherche/wpseries/wp/1402.pdf
File Function: First version, 2014
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Paper provided by University of Namur, Department of Economics in its series Working Papers with number 1402.

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Length: 24 pages
Date of creation: Mar 2014
Handle: RePEc:nam:wpaper:1402
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  1. Aidt, Toke & Dutta, Jayasri & Sena, Vania, 2008. "Governance regimes, corruption and growth: Theory and evidence," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 195-220, June.
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