IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v55y2019i5p1051-1068.html
   My bibliography  Save this article

Corruption and Entrepreneurship in Emerging Markets

Author

Listed:
  • Jiaqi Liu
  • Mingzhi Hu
  • Huan Zhang
  • Jon Carrick

Abstract

We applied an institutional perspective lens to examining the relationship between corruption and entrepreneurship. Our results suggest that corruption plays an informal but legitimate institutional channel in facilitating entrepreneurship in sub-national regions with underdeveloped formal institutions. However, we also find the positive relationship between corruption and entrepreneurship is limited, and that high levels of corruption have a negative effect on entrepreneurship. Examining a longitudinal nationwide individual-level survey from China, we find an inverted U relationship between corruption and entrepreneurship; i.e., sub-national corruption at low levels is positively associated with focal regions’ prevalence of entrepreneurship, but prevalence of entrepreneurship is negatively correlated with high levels of corruption. Additionally, we find that sub-national regions with stronger marketization level (e.g., pro-market resource allocation and lower market entry barriers) can offset the diminishing positive effect of corruption. This study theoretically advances the puzzle of mixed findings on the corruption–entrepreneurship relationship by considering the sub-national region differences. We also enrich the understanding of the role of informal institutions on entrepreneurship activities in emerging markets.

Suggested Citation

  • Jiaqi Liu & Mingzhi Hu & Huan Zhang & Jon Carrick, 2019. "Corruption and Entrepreneurship in Emerging Markets," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(5), pages 1051-1068, April.
    • Handle: RePEc:mes:emfitr:v:55:y:2019:i:5:p:1051-1068
    DOI: 10.1080/1540496X.2018.1531242
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2018.1531242
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2018.1531242?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alice Medioli & Pier Luigi Marchini & Tatiana Mazza, 2024. "The impact of corruption and public governance quality on family firm business strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 33(1), pages 55-69, January.
    2. Pier Luigi Marchini & Tatiana Mazza & Alice Medioli, 2020. "Corruption and sustainable development: The impact on income shifting in European international groups," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 717-730, March.
    3. Sánchez-Vidal, F. Javier & Ramón-Llorens, M. Camino & La Rocca, Maurizio, 2024. "Corruption and intrapreneurship," International Business Review, Elsevier, vol. 33(1).
    4. Guney, Yilmaz & Karpuz, Ahmet & Komba, Gabriel, 2020. "The effects of board structure on corporate performance: Evidence from East African frontier markets," Research in International Business and Finance, Elsevier, vol. 53(C).
    5. Sanja Tišma & Sanja Maleković & Daniela Angelina Jelinčić & Mira Mileusnić Škrtić & Ivana Keser, 2022. "From Science to Policy: How to Support Social Entrepreneurship in Croatia," JRFM, MDPI, vol. 15(1), pages 1-19, January.
    6. Hajilee, Massomeh & Stringer, Donna Y. & Hayes, Linda A., 2021. "On the link between the shadow economy and stock market development: An asymmetry analysis," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 303-316.
    7. Das, Khanindra Ch. & Mahalik, Mantu Kumar, 2020. "International subsidiary performance of Indian multinationals in the extractive sector: The role of institutional quality, corruption and investment regime," Resources Policy, Elsevier, vol. 67(C).
    8. Hu, Mingzhi & Su, Yinxin & Ye, Wenping, 2019. "Promoting or inhibiting: The role of housing price in entrepreneurship," Technological Forecasting and Social Change, Elsevier, vol. 148(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:55:y:2019:i:5:p:1051-1068. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.