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New products and corruption: evidence from Indian firms

Author

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  • Felipe Starosta de Waldemar

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

It has been shown that corruption has a negative effect on firm productivity, but what about its impact on product innovation ? We find that corruption, functioning as a bribe tax, diminishes the probability of new product introduction. We use a World Bank Enterprise Survey from India in 2005, with 1600 firms answering if they introduced a new product to the firm and on the average quantity of bribe paid by firms. Controlling for innovation determinants, firm characteristics, location choice, multi-product firms and other business environment variables, sector-location bribe averages have a negative and significant impact on product innovation.

Suggested Citation

  • Felipe Starosta de Waldemar, 2011. "New products and corruption: evidence from Indian firms," Post-Print halshs-00595048, HAL.
    • Handle: RePEc:hal:journl:halshs-00595048
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00595048
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    Cited by:

    1. Valerija Botrić & Ljiljana Božić, 2015. "Innovators' vs Non-innovators' perceptions of corruption in European post-transition economies," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 8(3), pages 47-58, December.
    2. DeMaria, Federica & Franco, Chiara & Solferino, Nazaria, 2015. "Corruption and innovation: the mediating role of trade," AICCON Working Papers 139-2015, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.

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