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The impact of petty corruption on firm innovation in Vietnam

Ngoc Anh Nguyen, Hung Doan (), Ngoc Minh Nguyen and Binh Tran-Nam
Authors registered in the RePEc Author Service: Ngoc-Minh Nguyen ()

MPRA Paper from University Library of Munich, Germany

Abstract: Corruption has been found to have complex effects on firm innovation.Limited theoretical and empirical evidence to date has been rather inconclusive. This study employs econometric estimation techniques to analyze data from small and medium manufacturing enterprises in Vietnam to assess the impact of petty corruption on firm innovation. The empirical results tend to support the "greasing" impact of corruption on innovation. Specifically, informal payments by Vietnamese firms are shown to encourage overall innovation, product improvement, innovation and new innovation. In view of the commonplace business practice of paying small informal fees to speed up transactions in the inefficient public sector in Vietnam, this finding is not entirely unexpected, though troubling.

Keywords: Corruption; Viet Nam; Innovation (search for similar items in EconPapers)
JEL-codes: O17 O3 (search for similar items in EconPapers)
Date: 2016-06
New Economics Papers: this item is included in nep-ent, nep-sbm and nep-sea
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Citations: View citations in EconPapers (7) Track citations by RSS feed

Published in Crime, Law and Social Change 4.65(2016): pp. 377-394

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:71902

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