Abstract:
Controlling corruption increases the level of trust in government and market institutions and strengthens the rules and regulations of trade. Such trust leads to greater coordination of complex economic activities. Some believe that reducing corruption leads to the expansion of entrepreneurship because corruption hinders productivity and investment in innovation and entrepreneurship by increasing transaction costs. In this article, using the panel data method and the generalized method of moments for 45 different countries during the years 2001-2009, the impact of corruption on entrepreneurship is investigated. The results of this study confirm that corruption plays an important role in reducing entrepreneurship. The results also indicate that attracting foreign investments, in addition to having a direct impact on entrepreneurship, indirectly leads to an increase in entrepreneurship through the knowledge spillover effect.
Machine summary:
Investigating the relationship between corruption and entrepreneurship using a panel data model * Ahmad Gholami ** Bagher Adabi Firouzjayi Abstract Controlling corruption increases the level of trust in the government and market institutions and strengthens the rules and regulations of trade.
Some of the main causes of administrative corruption include granting excessive powers and authority and the existence of grounds for their misuse, incomplete organizational structures and the lack of proper control systems, lack of livelihood and future security, lack of job security, people's ignorance of their rights and duties, influence 1- Jamshidian, Yazdanshenas 2- Ibid social powers, lack of standard methods for performing tasks and creating grounds for procrastination, financial and economic problems, moral weakness, management weakness, a sense of lack of commitment and loyalty of individuals toward the organization and society, the influence of instrumental culture in the organization, the existence of harmful informal relationship networks in organizations, improper implementation of laws and regulations, lengthy and cumbersome bureaucracies, the lack of alignment between employees' salaries and costs, an individualistic spirit and seeking simple and quick solutions.
Bureaucratic economic corruption, by absorbing a portion of production incomes, causes a decrease in the profitability of companies and various institutions, and this issue in turn leads to the weakening of entrepreneurship and entrepreneurial activities.
3- Empirical Studies In this section, some cases of empirical studies conducted related to corruption and entrepreneurship are briefly mentioned: Sabahi and Malek al-Sadati (1388) in a study examined the effect of controlling financial corruption on economic growth in a wide sample of countries in the world during the period 1996-2006.
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