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Which Entrepreneurs Bribe and what do they Get from It? Exploratory Evidence from Vietnam

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  • Gjalt de Jong
  • Phan Anh Tu
  • Hans van Ees

Abstract

This article investigates whether bribery in emerging economies matters and whether such bribery has a diminishing return to performance. Bribery allows entrepreneurs to develop and foster a network of informal relationships with public officials, and reap the accompanying benefits; but it may also have disadvantages, such as an inefficient allocation of resources. The relationship between bribery and performance was estimated using unique data derived from a survey of 606 Vietnamese entrepreneurs. We controlled for various entrepreneurial, organizational, and industrial characteristics. The exploratory results provide support for a hill–shaped non–monotonic relationship between bribery and revenues.

Suggested Citation

  • Gjalt de Jong & Phan Anh Tu & Hans van Ees, 2012. "Which Entrepreneurs Bribe and what do they Get from It? Exploratory Evidence from Vietnam," Entrepreneurship Theory and Practice, , vol. 36(2), pages 323-345, March.
    • Handle: RePEc:sae:entthe:v:36:y:2012:i:2:p:323-345
    DOI: 10.1111/j.1540-6520.2010.00400.x
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