The idea that corruption may, in some situations, be beneficial is widely studied within the context of growth. In the field of entrepreneurship, a unique paper by Dreher and Gassebner (2011) explicitly documents it. Their findings support the assumption that corruption “greases the wheels” of strict regulation for early stage firms. In this article, we complement their seminal work. We provide evidence that entrepreneurs are heterogeneous in their response to the institutional environment. In particular, corruption and regulation affect entrepreneurship to different extent, according to the underlying motivation compelling an individual to open a business. Opportunity-driven entrepreneurs are much more affected by corruption and regulation than necessity-driven ones.
langue originaleAnglais
Nombre de pages24
Etat de la publicationPublié - 4 mars 2014

Série de publications

NomUniversity of Namur. Department of Economics Working Papers Series
Numéro WP1402

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