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The Impact of Corruption on Entrepreneurship

The Impact of Corruption on Entrepreneurship

Gil Avnimelech, Yaron Zelekha
Copyright: © 2015 |Pages: 13
ISBN13: 9781466681958|ISBN10: 1466681950|EISBN13: 9781466681965
DOI: 10.4018/978-1-4666-8195-8.ch001
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MLA

Avnimelech, Gil, and Yaron Zelekha. "The Impact of Corruption on Entrepreneurship." Business Law and Ethics: Concepts, Methodologies, Tools, and Applications, edited by Information Resources Management Association, IGI Global, 2015, pp. 1-13. https://doi.org/10.4018/978-1-4666-8195-8.ch001

APA

Avnimelech, G. & Zelekha, Y. (2015). The Impact of Corruption on Entrepreneurship. In I. Management Association (Ed.), Business Law and Ethics: Concepts, Methodologies, Tools, and Applications (pp. 1-13). IGI Global. https://doi.org/10.4018/978-1-4666-8195-8.ch001

Chicago

Avnimelech, Gil, and Yaron Zelekha. "The Impact of Corruption on Entrepreneurship." In Business Law and Ethics: Concepts, Methodologies, Tools, and Applications, edited by Information Resources Management Association, 1-13. Hershey, PA: IGI Global, 2015. https://doi.org/10.4018/978-1-4666-8195-8.ch001

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Abstract

There is a consensus that corruption may result in high societal costs. A growing body of research reveals the negative effects of corruption on a variety of economic indicators. This chapter presents a literature review on the impact of corruption on entrepreneurship. It allows us to suggest that one of the transition channels through which corruption has impacted growth is entrepreneurship. The main channels in which corruption impacts entrepreneurship is through reduced incentives for entrepreneurial activity and reduced trust within the system. The authors present evidence that the negative impact of an incremental increase in the level of corruption on entrepreneurship is more harmful in developed countries than in developing countries. Thus, they stress the need for more research in this area with the aim of establishing appropriate frameworks for the fight of corruption in both developing and developed countries and suggest significant gains from anti-corruption efforts, especially in developed countries.

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