Corruption and destructive entrepreneurship
The negative effects of corruption at the macro level are well-documented. Corruption reduces economic growth, lowers investment, and erodes trust in government officials, creating an institutional environment that pushes entrepreneurs from productive to destructive activities. Corruption also has e...
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| Veröffentlicht in: | Small business economics 2018-06, Vol.51 (1), p.181-202 |
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| creator | Boudreaux, Christopher J. Nikolaev, Boris N. Holcombe, Randall G. |
| description | The negative effects of corruption at the macro level are well-documented. Corruption reduces economic growth, lowers investment, and erodes trust in government officials, creating an institutional environment that pushes entrepreneurs from productive to destructive activities. Corruption also has effects at the micro level because some industries are better situated to profit from corruption than others. Corruption not only lowers economic output but also shifts resources toward some industries and away from others. Using federal convictions in the USA as a measure of corruption, regression results show that increased corruption shifts resources toward the construction industry and away from the education industry and professional, scientific, and technical service industry. The evidence also shows that the distance from state capitals and voter turnout moderate the relationship between corruption and firm concentrations. |
| doi_str_mv | 10.1007/s11187-017-9927-x |
| format | Article |
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Corruption reduces economic growth, lowers investment, and erodes trust in government officials, creating an institutional environment that pushes entrepreneurs from productive to destructive activities. Corruption also has effects at the micro level because some industries are better situated to profit from corruption than others. Corruption not only lowers economic output but also shifts resources toward some industries and away from others. Using federal convictions in the USA as a measure of corruption, regression results show that increased corruption shifts resources toward the construction industry and away from the education industry and professional, scientific, and technical service industry. 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Corruption reduces economic growth, lowers investment, and erodes trust in government officials, creating an institutional environment that pushes entrepreneurs from productive to destructive activities. Corruption also has effects at the micro level because some industries are better situated to profit from corruption than others. Corruption not only lowers economic output but also shifts resources toward some industries and away from others. Using federal convictions in the USA as a measure of corruption, regression results show that increased corruption shifts resources toward the construction industry and away from the education industry and professional, scientific, and technical service industry. The evidence also shows that the distance from state capitals and voter turnout moderate the relationship between corruption and firm concentrations.</description><subject>Business and Management</subject><subject>Capital cities</subject><subject>Construction industry</subject><subject>Convictions</subject><subject>Corruption</subject><subject>Economic growth</subject><subject>Education</subject><subject>Entrepreneurs</subject><subject>Entrepreneurship</subject><subject>Industrial Organization</subject><subject>Management</subject><subject>Microeconomics</subject><subject>Politics</subject><subject>Voter behavior</subject><subject>Voter turnout</subject><issn>0921-898X</issn><issn>1573-0913</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2018</creationdate><recordtype>article</recordtype><sourceid>BENPR</sourceid><recordid>eNp9kEFLAzEQhYMoWKs_wINQ8CjRmSS7SY5SrAoFLwrewjad6BbdXZNdqf_elBW9eRoG3vfezGPsFOESAfRVQkSjOaDm1grNt3tsgoWWHCzKfTYBK5Aba54P2VFKG4AdBRN2MW9jHLq-bptZ1axna0p9HHxff9KMmj5SF6mhIabXujtmB6F6S3TyM6fsaXHzOL_jy4fb-_n1knsFsudKSZLBGqqCL9FT0EGvyITSC-nRgoLgkZTXVlQVBFAobN7Vqlh5VRLIKTsffbvYfgz5ILdph9jkSCdAGAW6KExW4ajysU0pUnBdrN-r-OUQ3O47N3bicidu14nbZkaMTMra5oXin_N_0NkIbVLfxt8UpUqrpRTyG8LFbqM</recordid><startdate>20180601</startdate><enddate>20180601</enddate><creator>Boudreaux, Christopher J.</creator><creator>Nikolaev, Boris N.</creator><creator>Holcombe, Randall G.</creator><general>Springer</general><general>Springer US</general><general>Springer Nature B.V</general><scope>AAYXX</scope><scope>CITATION</scope><scope>3V.</scope><scope>7WY</scope><scope>7WZ</scope><scope>7X5</scope><scope>7XB</scope><scope>87Z</scope><scope>8A3</scope><scope>8AO</scope><scope>8BJ</scope><scope>8FK</scope><scope>8FL</scope><scope>ABUWG</scope><scope>AFKRA</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>FQK</scope><scope>FRNLG</scope><scope>F~G</scope><scope>JBE</scope><scope>K60</scope><scope>K6~</scope><scope>L.-</scope><scope>M0C</scope><scope>PHGZM</scope><scope>PHGZT</scope><scope>PKEHL</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>Q9U</scope></search><sort><creationdate>20180601</creationdate><title>Corruption and destructive entrepreneurship</title><author>Boudreaux, Christopher J. ; 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| source | Jstor Complete Legacy; SpringerLink Journals; EBSCOhost Business Source Complete |
| subjects | Business and Management Capital cities Construction industry Convictions Corruption Economic growth Education Entrepreneurs Entrepreneurship Industrial Organization Management Microeconomics Politics Voter behavior Voter turnout |
| title | Corruption and destructive entrepreneurship |
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