An examination of the relationship between corruption and total entrepreneurial activity
by Sibin Wu; Xin Liang
World Review of Entrepreneurship, Management and Sustainable Development (WREMSD), Vol. 8, No. 4, 2012

Abstract: In this paper, we attempt to link the International Transparency index with economic development, specifically entrepreneurial activity. Using data collected through Global Entrepreneurship Monitor (GEM), CIA's World Factbook and the 1997 Transparency International, we found that overall corruption and total entrepreneurial activity (TEA) are negatively related, that is, the more corrupted, the less entrepreneurial activity. However, we argued that the relationship between the two variables can be more complicated. Introducing a non-linear term, we discovered that corruption and TEA are related in a U shape where extremely corrupted and extremely transparent countries tend to have more entrepreneurial activities. We identified possible reasons for our findings. We also provided suggestions to managers and entrepreneurs engaging in international business activities.

Online publication date: Thu, 18-Sep-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the World Review of Entrepreneurship, Management and Sustainable Development (WREMSD):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com