TY - JOUR
T1 - An examination of the relationship between corruption and total entrepreneurial activity
AU - Wu, Sibin
AU - Liang, Xin
PY - 2012
Y1 - 2012
N2 - In this paper, we attempt to link the International Transparency index with economic development, specifically entrepreneurial activity. Using data collected through Global Entrepreneurship Monitor (GEM), CIA's World Factbook and the 1997 Transparency International, we found that overall corruption and total entrepreneurial activity (TEA) are negatively related, that is, the more corrupted, the less entrepreneurial activity. However, we argued that the relationship between the two variables can be more complicated. Introducing a non-linear term, we discovered that corruption and TEA are related in a U shape where extremely corrupted and extremely transparent countries tend to have more entrepreneurial activities. We identified possible reasons for our findings. We also provided suggestions to managers and entrepreneurs engaging in international business activities.
AB - In this paper, we attempt to link the International Transparency index with economic development, specifically entrepreneurial activity. Using data collected through Global Entrepreneurship Monitor (GEM), CIA's World Factbook and the 1997 Transparency International, we found that overall corruption and total entrepreneurial activity (TEA) are negatively related, that is, the more corrupted, the less entrepreneurial activity. However, we argued that the relationship between the two variables can be more complicated. Introducing a non-linear term, we discovered that corruption and TEA are related in a U shape where extremely corrupted and extremely transparent countries tend to have more entrepreneurial activities. We identified possible reasons for our findings. We also provided suggestions to managers and entrepreneurs engaging in international business activities.
KW - Corruption
KW - Economic growth
KW - GEM
KW - Global Entrepreneurship Monitor
KW - International transparency
KW - Management
KW - Sustainable development
KW - TEA
KW - Total entrepreneurial activity
UR - http://www.scopus.com/inward/record.url?scp=84869792759&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84869792759&partnerID=8YFLogxK
U2 - 10.1504/WREMSD.2012.050302
DO - 10.1504/WREMSD.2012.050302
M3 - Article
AN - SCOPUS:84869792759
SN - 1746-0573
VL - 8
SP - 478
EP - 489
JO - World Review of Entrepreneurship, Management and Sustainable Development
JF - World Review of Entrepreneurship, Management and Sustainable Development
IS - 4
ER -