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Corruption and innovation: the mediating role of trade

Author

Listed:
  • Federica DeMaria

    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

  • Chiara Franco

    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

  • Nazaria Solferino

    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

Abstract

The paper aims to investigate the relationship among corruption, innovation and trade. We develop a model where a firm producing an innovation may pay some bribes to sell its own products in the domestic or international market. The government official may accept or not the bribes and choose whether or not to be honest, eventually, gaining some illegal beneficial. Firm’s profit may be affected by the costs of innovation and on the cost of corruption. Firm’s ability to sell new products in the foreign market also assumes a strategic role by playing a part in determining the efficient enterprises.

Suggested Citation

  • Federica DeMaria & Chiara Franco & Nazaria Solferino, 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.
    • Handle: RePEc:ris:aiccon:2015_139
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    References listed on IDEAS

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    More about this item

    Keywords

    Corruption; Innovation; Export; Institutions;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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