New products and corruption: evidence from Indian firms

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

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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.

Keywords: Innovation; corruption; firm performance.; performance de la firme. (search for similar items in EconPapers)
Date: 2011-05
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00595048
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Published in 2011

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