Template-type: ReDIF-Paper 1.0
Author-Name: Habiyaremye, Alexis
Author-Email: alexis.habiyaremye@antalya.edu.tr
Author-Workplace-Name: Antalya International University
Author-Name: Raymond, Wladimir
Author-Email: wladimir.raymond@statec.etat.lu
Author-Workplace-Name: Institut National de la Statistique
	 et des Etudes Economiques (STATEC), Luxembourg
Title: Transnational corruption and innovation in transition economies
Abstract: In this paper, we examine how transnational corruption affects host 
	 country firms' innovation behaviour and performance in transition 
	 economies of Eastern Europe and Central and Western Asia. Using 
	 firm-level data from the Business Environment and Enterprise Performance 
	 Survey, we show that the involvement of foreign firms in corruption 
	 practices reduces the propensity of firms in host countries to invest in 
	 research and development and harms their ability to improve their 
	 existing products and services. Using a simultaneousequations recursive 
	 model and controlling for various innovation determinants, we also show 
	 that the reduction in innovation effort ultimately also hurts the host 
	 country's long-term ability to successfully bring new products on the 
	 market through indirect effects.
Classification-JEL: H42, H57, L26, O31, O32, P37
Keywords: Transnational corruption, Innovation, Transition Economies
Series: UNU-MERIT Working Papers
Creation-Date: 2013
Number: 2013-050
File-URL: https://unu-merit.nl/publications/wppdf/2013/wp2013-050.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2013050