Which Entrepreneurs Bribe and what do they Get from It? Exploratory Evidence from Vietnam

Gjalt de Jong, Phan Anh Tu and Hans van Ees

Entrepreneurship Theory and Practice, 2012, vol. 36, issue 2, 323-345

Abstract: This article investigates whether bribery in emerging economies matters and whether such bribery has a diminishing return to performance. Bribery allows entrepreneurs to develop and foster a network of informal relationships with public officials, and reap the accompanying benefits; but it may also have disadvantages, such as an inefficient allocation of resources. The relationship between bribery and performance was estimated using unique data derived from a survey of 606 Vietnamese entrepreneurs. We controlled for various entrepreneurial, organizational, and industrial characteristics. The exploratory results provide support for a hill–shaped non–monotonic relationship between bribery and revenues.

Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:36:y:2012:i:2:p:323-345

DOI: 10.1111/j.1540-6520.2010.00400.x

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