The DOI matches its Crossref record; 67 of the 67 references it cites were found in a registry or an index.
Greasing the wheels? The impact of regulations and corruption on firm entry
Open accessAbstract
This paper investigates the question of whether corruption might ‘grease the wheels’ of an economy. We investigate whether and to what extent the impact of regulations on entrepreneurship is dependent on corruption. We first test whether regulations robustly deter firm entry into markets. Our results show that the existence of a larger number of procedures required to start a business, as well as larger minimum capital requirements are detrimental to entrepreneurship. Second, we test whether corruption reduces the negative impact of regulations on entrepreneurship in highly regulated economies. Our empirical analysis, covering a maximum of 43 countries over the 2003–2005 period, shows that corruption facilitates firm entry in highly regulated economies. For example, the ‘greasing’ effect of corruption kicks in at around 50 days required to start a new business. Our results thus provide support for the ‘grease the wheels’ hypothesis.
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Cites
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(2012) · American Economic Review · doi:10.1257/aer.102.2.i · Cited by 13,709
The Theory of Economic Regulation
Stigler, G. J. (1971) · The Bell Journal of Economics and Management Science · doi:10.2307/3003160 · Cited by 8,098
What To Do (and Not to Do) with Time-Series Cross-Section Data
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Political Order in Changing Societies
Huntington, S. P. (1970) · Verfassung in Recht und Übersee · doi:10.5771/0506-7286-1970-2-257 · Cited by 6,333
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The Theory of Economic Regulation
Stigler, G. J. (2021) · The Political Economy · doi:10.4324/9781315495811-8 · Cited by 5,483
Djankov, S., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2002) · The Quarterly Journal of Economics · doi:10.1162/003355302753399436 · Cited by 3,956 · cited 1×
“Dreher and Siemers (2009) show that more corruption is associated with more restrictions on the capital account, while Djankov et al. (2002) find that entry regulations are more stringent as corruption among public officials becomes wider and deeper.”
The causes of corruption: a cross-national study
Treisman, D. (2000) · Journal of Public Economics · doi:10.1016/s0047-2727(99)00092-4 · Cited by 3,889
Cited by
Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence
Aparicio, S., Urbano, D., & Audretsch, D. (2016) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2015.04.006 · Cited by 678
Doing Business 2020: Comparing Business Regulation in 190 Economies
Bank, W. (2020) · doi:10.1596/978-1-4648-1440-2 · Cited by 501
Bjørnskov, C., & Foss, N. J. (2016) · Academy of Management Perspectives · doi:10.5465/amp.2015.0135 · Cited by 359
Local governance, corruption, and public service quality: evidence from a national survey in Vietnam
Nguyen, T. V., Bach, T. N., Le, T. Q., & Le, C. Q. (2017) · International Journal of Public Sector Management · doi:10.1108/ijpsm-08-2016-0128 · Cited by 72
Metadata
- Authors
- Dreher, A., & Gassebner, M.
- Venue
- Public Choice
- Published
- 2011-10-05
- Volume
- 155
- Issue
- 3-4
- Pages
- 413-432
- ISSN
- 0048-5829 (ISSN-L)
- 1573-7101
- OpenAlex
- W2132440823
- Cited by
- 746
- References
- 67
- FWCI
- 40.72
- Type
- journal article
- Language
- en
- Open access
- hybrid
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
