Bribery—Export Nexus under the Firm’s Growth Obstacles

Business bribery is a particularly serious problem in the integration era. First, this article investigates the effects of institutional obstacles on firms’ bribery in 131 countries classified by nation income groups. Through the appropriate proposal of fitting functions, the relationship between ob...

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Main Authors: Trang Hoai Phan, Rainer Stachuletz
Format: Article
Language:English
Published: MDPI AG 2022-01-01
Series:Economies
Subjects:
Online Access:https://www.mdpi.com/2227-7099/10/2/28
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author Trang Hoai Phan
Rainer Stachuletz
author_facet Trang Hoai Phan
Rainer Stachuletz
author_sort Trang Hoai Phan
collection DOAJ
description Business bribery is a particularly serious problem in the integration era. First, this article investigates the effects of institutional obstacles on firms’ bribery in 131 countries classified by nation income groups. Through the appropriate proposal of fitting functions, the relationship between obstructions and the predicted margin effect of bribery is intuitively elucidated. Second, this paper sheds light on the relationship between bribery payment and exports. Then the analysis is upgraded when controlling for the moderation of a firm’s growth constraints. The results detected that not only institutional barriers, but also internal and external hindrances play an essential role in the interaction between bribe payments and export share. More interestingly, this study scrutinizes the role of obstacles in this relationship separately. Besides, SMEs and large enterprises are also adopted in further sensitivity analyses. To solve the endogeneity problem, the study uses the average amount of bribery in a firm’s location, sector, and the country as an instrumental variable (<i>IV</i>). The results obtained are not consistent across country groups classified by national income. Due to obstacles during a firm’s operation, the amplitude of the positive effect of bribery on exports is reduced.
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spelling doaj.art-c86fcaed831745b9a3e432718b194eaf2023-11-23T19:36:08ZengMDPI AGEconomies2227-70992022-01-011022810.3390/economies10020028Bribery—Export Nexus under the Firm’s Growth ObstaclesTrang Hoai Phan0Rainer Stachuletz1International Economics, Technical University of Darmstadt, Hochschulstr. 1, 64289 Darmstadt, GermanyDepartment of Economics 1, Berlin School of Economics and Law, Badensche Str. 52, 10825 Berlin, GermanyBusiness bribery is a particularly serious problem in the integration era. First, this article investigates the effects of institutional obstacles on firms’ bribery in 131 countries classified by nation income groups. Through the appropriate proposal of fitting functions, the relationship between obstructions and the predicted margin effect of bribery is intuitively elucidated. Second, this paper sheds light on the relationship between bribery payment and exports. Then the analysis is upgraded when controlling for the moderation of a firm’s growth constraints. The results detected that not only institutional barriers, but also internal and external hindrances play an essential role in the interaction between bribe payments and export share. More interestingly, this study scrutinizes the role of obstacles in this relationship separately. Besides, SMEs and large enterprises are also adopted in further sensitivity analyses. To solve the endogeneity problem, the study uses the average amount of bribery in a firm’s location, sector, and the country as an instrumental variable (<i>IV</i>). The results obtained are not consistent across country groups classified by national income. Due to obstacles during a firm’s operation, the amplitude of the positive effect of bribery on exports is reduced.https://www.mdpi.com/2227-7099/10/2/28briberyexportfirm’s growth obstaclesNational Income Classificationinstrumental variableprobit regression
spellingShingle Trang Hoai Phan
Rainer Stachuletz
Bribery—Export Nexus under the Firm’s Growth Obstacles
Economies
bribery
export
firm’s growth obstacles
National Income Classification
instrumental variable
probit regression
title Bribery—Export Nexus under the Firm’s Growth Obstacles
title_full Bribery—Export Nexus under the Firm’s Growth Obstacles
title_fullStr Bribery—Export Nexus under the Firm’s Growth Obstacles
title_full_unstemmed Bribery—Export Nexus under the Firm’s Growth Obstacles
title_short Bribery—Export Nexus under the Firm’s Growth Obstacles
title_sort bribery export nexus under the firm s growth obstacles
topic bribery
export
firm’s growth obstacles
National Income Classification
instrumental variable
probit regression
url https://www.mdpi.com/2227-7099/10/2/28
work_keys_str_mv AT tranghoaiphan briberyexportnexusunderthefirmsgrowthobstacles
AT rainerstachuletz briberyexportnexusunderthefirmsgrowthobstacles