Skip to main content

Are Corruption and Ease of Doing Business Correlated? An Analysis of 172 Nations

  • Chapter

Part of the The Academy of International Business book series (AIB)

Abstract

Corruption and its implications in international business trading and investments represent an increasing interest for academicians. It is extremely important to understand how corruption affects economic growth directly, by shifting the allocation of public funds, and, indirectly, by changing the incentives, prices, and opportunities faced by entrepreneurs (Jain, 2002). Corruption refers to behaviour that violates the trust placed in public officials and serves to destabilize the basis on which generalized interpersonal trust relies and increases the risks faced by the entrepreneur (Anokhin and Schulze, 2009).

Keywords

  • Business Ethic
  • Foreign Direct Investment
  • International Business
  • Black Market
  • Corruption Perception Index

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

This is a preview of subscription content, access via your institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1057/9781137007742_2
  • Chapter length: 14 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   109.00
Price excludes VAT (USA)
  • ISBN: 978-1-137-00774-2
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Hardcover Book
USD   149.99
Price excludes VAT (USA)

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Aguilera, R.V., Williams, A. C., Conley, M. J. and Rupp, E. D. (May 2006) ‘Corporate Governance and Social Responsibility: A Comparative Analysis of the UK and the US’, 14(3). Available at

    Google Scholar 

  • Anokhin, S. and Schulze, W. S. (2009) ‘Entrepreneurship, Innovation and Corruption’, Journal of Business Venturing, 24 (5), 465–76.

    CrossRef  Google Scholar 

  • Asiedu, E. and Freeman, J. (2009) ‘The Effect of Corruption on Investment Growth: Evidence from Firms in Latin America, sub-Saharan Africa, and Transition Countries’, Review of Development Economics, 13 (2), 200–14.

    CrossRef  Google Scholar 

  • Baker, T., Gedajlovic, E. and Lubatkin, M. (2005) ‘A Framework for Comparing Entrepreneurship Processes Across Nations’, Journal of International Business Studies, 36, 492–504.

    CrossRef  Google Scholar 

  • Brunetti, A., Kisunko, G. and Weder, B. (1998) ‘Credibility of Rules and Economic Growth: Evidence from a Worldwide Survey of the Private Sector’, The World Bank Economic Review, 12 (3), 353–84.

    CrossRef  Google Scholar 

  • Calderón, R., Álvarez-Arce, J. and Mayoral, S. (2009) ‘Corporation as a Crucial Ally against Corruption’, Journal of Business Ethics, 87 (July), 319–32.

    CrossRef  Google Scholar 

  • Carmignani, F. (2005) ‘Efficiency of Institutions, Political Stability and Income Dynamics’, United Nations Economic Commission for Europe (UNECE).

    Google Scholar 

  • Ciocchini, F., Durbin, E. and Ng, D. (2003), ‘Does Corruption Increase Emerging Market Bond Spreads?’, Journal of Economics and Business, 55, 503–28.

    CrossRef  Google Scholar 

  • Di Pietro, W. R. (2009) ‘Country Innovativeness and the Difficulty of Doing Business’, Journal of Global Business Issues, 3 (2), 69–75.

    Google Scholar 

  • Doing Business Rankings (2010)

    Google Scholar 

  • Doucouliagos, H. and Ulubasoglu, M. A. (2008) ‘Democracy and Economic Growth: A Meta-analysis’, American Journal of Political Science, 52 (1), 61–83.

    CrossRef  Google Scholar 

  • Goel, R. K. and Nelson, M. A. (2010) ‘Causes of Corruption: History, Geography and Government’, Journal of Policy Modeling, 32 (4), 433–47.

    CrossRef  Google Scholar 

  • Gray (2002) ‘Of Messiness, Systems and Sustainability: Towards a More Social and Environmental Finance and Accounting’, The British Accounting Review, 34 (4), 357–86.

    CrossRef  Google Scholar 

  • Habib, M. and Zurawicki, L. (2002) ‘Corruption and Foreign Direct Investment’, Journal of International Business Studies, 33 (2), 291–307.

    CrossRef  Google Scholar 

  • Hannafey, F. T. (2003) ‘Entrepreneurship and Ethics: A Literature Review’, Journal of Business Ethics, 46 (2), 99–110.

    CrossRef  Google Scholar 

  • Hellman, J. and Kaufmann, D. (2004) ‘The Inequality of Influence’ in Kornai, J. and Rose-Ackerman, S. (eds), Trust in Transition (New York: Palgrave Macmillan).

    Google Scholar 

  • Hill, C. W. L. (2005) International Business: Competing in the Global Marketplace (5th international edn, New York: McGraw-Hill/Irwin).

    Google Scholar 

  • Hotchkiss, C. (1998) ‘The Sleeping Dog Stirs: New Signs of Life in Efforts to End Corruption in International Business’, Journal of Public Policy & Marketing, 17 (1), 108–15.

    Google Scholar 

  • Husted, B. W. (1999) ‘Wealth, Culture, and Corruption’, Journal of International Business Studies, 30 (2), 339–59.

    CrossRef  Google Scholar 

  • Jain, A. K. (2002) ‘Corruption: A Review’, Journal of Economic Surveys, 15 (1), 71–121.

    CrossRef  Google Scholar 

  • Kabongo, J. D. and Okpara, J. O. (2009) ‘Does Legal Origin Explain Differences in Regulations of Business Entry? A Study of sub-Saharan African Countries’, African Journal of Business & Economics Research, 4 (2/3), 8–24.

    Google Scholar 

  • Kaufmann, D. and Kraay, A. (2003) ‘Governance and Growth: Which Causes Which?’, The World Bank Working Papers (Washington DC: World Bank).

    Google Scholar 

  • Kenny, C. (2009) ‘Measuring Corruption in Infrastructure: Evidence from Transition and Developing Countries’, Journal of Development Studies, 45 (3), 314–32.

    CrossRef  Google Scholar 

  • Lambsdorff, G. J. (2003) ‘How Corruption Affects Productivity’, Kyklos, 56, 457–474.

    CrossRef  Google Scholar 

  • Lenway, S. A. and Murtha, T. P. (1994) ‘The State as Strategist in International Business Research’, Journal of International Business Studies, 25 (3), 513–35.

    CrossRef  Google Scholar 

  • Li, H., Xu, L. C. and Zou, H. (2000) ‘Corruption, Income Distribution, and Growth’, Economics and Politics, 12, 155–182.

    CrossRef  Google Scholar 

  • Li, S. and Wu, J. (2010) ‘Why Some Countries Thrive Despite Corruption: The Role of Trust in the Corruption-Efficiency Relationship’, Review of International Political Economy, 17 (1), 129–154.

    CrossRef  Google Scholar 

  • Mauro, P. (1995) ‘Corruption and Growth’, The Quarterly Journal of Economics, 110 (3), 681–712.

    CrossRef  Google Scholar 

  • Mitchell, D. T. and Campbell, N. D. (2009) ‘Corruption’s Effect on Business Venturing within the United States’, American Journal of Economics & Sociology, 68 (5), 1135–52.

    CrossRef  Google Scholar 

  • Mocan, N. (2008) ‘What Determines Corruption? International Evidence from Microdata’, Economic Inquiry, 46 (4), 493–510.

    CrossRef  Google Scholar 

  • Rivera-Batiz, F. L. (2002) ‘Democracy, Governance, and Economic Growth: Theory and Evidence’, Review of Development Economics, 6 (2), 225–47.

    CrossRef  Google Scholar 

  • Rodriguez, P., Uhlenbruck, K. and Eden, L. (2005) ‘Government Corruption and the Entry Strategies of Multinationals’, Academy of Management Review, 30 (2), 383–96.

    CrossRef  Google Scholar 

  • Rose-Ackerman, S. (2004) ‘The Challenge of Poor Governance and Corruption’, Copenhagen Consensus Challenge Paper, Copenhagenconcensus.com.

    Google Scholar 

  • Stading, G. and Altay, N. (2007) ‘Delineating the “Ease of Doing Business” construct within Supplier-Customer Interface’, Journal of Supply Chain Management, 43 (2), 29–38.

    CrossRef  Google Scholar 

  • Transparency International (2010)

    Google Scholar 

  • Uhlenbruck, K., Rodriguez, P., Doh, J. and Eden, L. (2006) ‘The Impact of Corruption on Entry Strategy: Evidence from Telecommunication Projects in Emerging Economies’, Organization Science, 17 (3), 402–14.

    CrossRef  Google Scholar 

  • Wei, S. J. (2000) ‘How Taxing is Corruption on International Investors?’ The Review of Economics and Statistics, 82(1), 1–11. (MIT Press Journals).

    CrossRef  Google Scholar 

  • Wei, S. J. and Smarzynska, B. K. (2000) ‘Corruption and the Composition of Foreign Direct Investment: Firm-Level Evidence’, Policy Research Working Paper, Series 2360 (The World Bank).

    Google Scholar 

  • Wilhelm, P. G. (2002) ‘International Validation of the Corruption Perception Index: Implications for Business Ethics and Entrepreneurship Education’, Journal of Business Ethics, 35, 177–189.

    Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Copyright information

© 2012 Jorge Mongay and Diana A. Filipescu

About this chapter

Cite this chapter

Mongay, J., Filipescu, D.A. (2012). Are Corruption and Ease of Doing Business Correlated? An Analysis of 172 Nations. In: Harris, S., Kuivalainen, O., Stoyanova, V. (eds) International Business. The Academy of International Business. Palgrave Macmillan, London. https://doi.org/10.1057/9781137007742_2

Download citation