The impact of petty corruption on firm innovation in Vietnam

Corruption has been found to have complex effects on firm innovation. Limited theoretical and empirical evidence to date has been rather inconclusive. This study employs econometric estimation techniques to analyze data from small and medium manufacturing enterprises in Vietnam to assess the impact...

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Bibliographic Details
Authors: Nguyen-ngoc-Anh (Author) ; Doan Quang Hung (Author) ; Nguyen Ngoc Minh (Author) ; Binh Tran-Nam 1954- (Author)
Format: Electronic Article
Language:English
Published: 2016
In: Crime, law and social change
Year: 2016, Volume: 65, Issue: 4/5, Pages: 377-394
Online Access: Presumably Free Access
Volltext (lizenzpflichtig)
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Keywords:
Firm Innovation
Foreign Firm
Informal Payment
Process Innovation
Product Innovation

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520 |a Corruption has been found to have complex effects on firm innovation. Limited theoretical and empirical evidence to date has been rather inconclusive. This study employs econometric estimation techniques to analyze data from small and medium manufacturing enterprises in Vietnam to assess the impact of petty corruption on firm innovation. The empirical results tend to support the "greasing" impact of corruption on innovation. Specifically, informal payments by Vietnamese firms are shown to encourage overall innovation, product improvement, innovation and new innovation. In view of the commonplace business practice of paying small informal fees to speed up transactions in the inefficient public sector in Vietnam, this finding is not entirely unexpected, though troubling. 
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