Does Bribery Sand the Wheels? New Evidence from Small and Medium Firms in Vietnam

• 발행기관: 한국유통과학회
• 저자명: Toan Ngoc NGUYEN
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 7 No.4, 309~316쪽, 전체 8쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2020.04.30

영문 초록

This research aims to revisit the hypothesis that bribery hurts firm performance in the context of a perceptibly corrupt country. Specifically, we use micro-data from Vietnamese small and medium firm surveys in 2013 and 2015 to examine whether bribery impedes firm revenue growth and labor productivity growth. An issue arising in this type of research is the potential endogeneity between firm bribing behaviors and firm performance. To go around the issue, we follow the literature to instrument bribery variable with the average probability of bribery in other provinces. We further employ the Analysis of Variance technique (ANOVA) to unveil if the effect of bribery is dependent on bribing purposes. The regression results show that firm performance is significantly influenced by firm size, firm age and firm bribing behavior. Larger firms are more likely to grow faster while firm performance tends to be negatively related to firm age. Particularly, we find that bribery significantly impedes firm revenue growth and labor productivity growth. The analysis of variance shows that the effect of bribery on firm performance may vary across bribing purposes. Our findings, therefore, support the sand-the-wheels hypothesis that bribery hurts firm performance even in a highly corrupt business environment.

목차

1. Introduction

2. Literature Review

3. Research Methods and Materials

4. Results and Discussion

5. Conclusions

References

키워드

Bribery Firm Performance Sand the Wheels Vietnam