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The Obstacle Named 'Corruption': An Empirical Analysis of Indian Firms

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  • Nabamita Dutta

    (College of Business Administration, University of Wisconsin-La Crosse)

Abstract

Using an individual level database of 9,000 plus Indian firms, we undertake a comprehensive empirical analysis examining factors that affect perception of corruption among firm owners. Our results find that being located in the official capital city as well as being dependent on credit are associated with higher perceptions of corruption. Interaction effect shows that being dependent on bank credit is especially harder for small and medium sized firms who then perceive greater corruption experiences. We also find female owned firms perceive corruption to be of greater obstacle. Finally, all types of firms ¨C government owned, private owned or foreign owned ¨C face higher perception of corruption. Our study has important implications for policy makers in India who wish to encourage small and medium business scenario.

Suggested Citation

  • Nabamita Dutta, 2019. "The Obstacle Named 'Corruption': An Empirical Analysis of Indian Firms," Review of Economics & Finance, Better Advances Press, Canada, vol. 17, pages 51-64, August.
    • Handle: RePEc:bap:journl:190304
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    References listed on IDEAS

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    More about this item

    Keywords

    India; Firm level data; Corruption perception; Firm size; Bank credit;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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