New Products and Corruption: Evidence from Indian Firms

Felipe Starosta de Waldemar

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: It has been shown that corruption has a negative effect on firm growth, but what about its impact on product innovation? I find that corruption, functioning as a bribe tax, diminishes the probability of new products being introduced. I use a World Bank Enterprise Survey conducted in India in 2005, with 1,600 firms answering both whether they introduced a new product to the firm, and whether and how much was paid in bribes. Controlling for innovation determinants and firm characteristics, sector-state bribery averages have a negative and significant impact on product innovation.

Keywords: Bribe; Bribery; Corruption; Firm; Firms; Innovation (search for similar items in EconPapers)
Date: 2012-09
References: Add references at CitEc
Citations: View citations in EconPapers (36)

Published in Developing Economies, 2012, 50 (3), pp.268-284

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: New Products and Corruption: Evidence from I ndian Firms (2012)
Working Paper: New products and corruption: evidence from Indian firms (2011)
Working Paper: New products and corruption: evidence from Indian firms (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-00966301

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().