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- Title
Bribe Payments and Innovation in Developing Countries: Are Innovating Firms Disproportionately Affected?
- Authors
Ayyagari, Meghana; Demirgüç-Kunt, Asli; Maksimovic, Vojislav
- Abstract
Innovating firms pay more bribes than noninnovators across 25,000 firms in 57 countries. The difference is larger in countries with more bureaucratic regulation and weaker governance. Innovators that pay bribes do not receive better services and do not have greater propensity to engage in other illegal activities such as tax evasion. Thus, innovators are more likely to be victims of corruption than perpetrators. Our findings point to the challenges facing entrepreneurs in developing countries and are consistent with the view that rent seeking by government officials unlike private criminal activity is more likely to target innovators.
- Subjects
BRIBERY; IMPROPER corporate payments; CORPORATE corruption; DEVELOPING countries; CORRUPTION; RENT seeking
- Publication
Journal of Financial & Quantitative Analysis, 2014, Vol 49, Issue 1, p51
- ISSN
0022-1090
- Publication type
Article
- DOI
10.1017/S002210901400026X