Bribery and Its Implications on Entrepreneurship in the Informal Economy: Evidence From Vietnam

Bribery and Its Implications on Entrepreneurship in the Informal Economy: Evidence From Vietnam

Phan Anh Tu
ISBN13: 9781522531173|ISBN10: 1522531173|EISBN13: 9781522531180
DOI: 10.4018/978-1-5225-3117-3.ch009
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MLA

Tu, Phan Anh. "Bribery and Its Implications on Entrepreneurship in the Informal Economy: Evidence From Vietnam." Examining the Private Sector's Role in Wealth Creation and Poverty Reduction, edited by Scott A. Hipsher, IGI Global, 2018, pp. 200-218. https://doi.org/10.4018/978-1-5225-3117-3.ch009

APA

Tu, P. A. (2018). Bribery and Its Implications on Entrepreneurship in the Informal Economy: Evidence From Vietnam. In S. Hipsher (Ed.), Examining the Private Sector's Role in Wealth Creation and Poverty Reduction (pp. 200-218). IGI Global. https://doi.org/10.4018/978-1-5225-3117-3.ch009

Chicago

Tu, Phan Anh. "Bribery and Its Implications on Entrepreneurship in the Informal Economy: Evidence From Vietnam." In Examining the Private Sector's Role in Wealth Creation and Poverty Reduction, edited by Scott A. Hipsher, 200-218. Hershey, PA: IGI Global, 2018. https://doi.org/10.4018/978-1-5225-3117-3.ch009

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Abstract

This chapter argues that while informal entrepreneurship is important in transition economies (for economic growth, job generation, and welfare improvement), it opens informal entrepreneurs to bribery requests because of their non-official status. With empirical evidence from Vietnam, this chapter demonstrates that the likelihood of bribery is determined by a firm's attributes. Building on a unique dataset of 352 entrepreneurs in informal firms in Vietnam, this chapter is able to quantify bribery at the firm level and measure key concepts. The empirical findings confirm the key assumption that entrepreneurs operating in the informal sector of the same country may vary in their propensity to pay bribes due to pressure resulting from (a) factors that are specific to the firms, or (b) factors specific to their perceptions of the environment.

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