Bribery and firm survival in Vietnam: Moderating effects of market competition,credit, and institutional constraints |
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Authors: | Nam Pham Xuan Thanh Ha Le |
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Affiliation: | Faculty of Economics, National Economics University, Hanoi, Vietnam |
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Abstract: | This paper examines the relationship between bribery and firm survival when facing different levels of market competition, credit constraints, and other institutional limitations. Using panel data from surveys of small- and medium-sized enterprises in Vietnam over a 10-year period and a semi-parametric Cox proportional hazards model approach, we provide empirical support for the “greasing-the-wheels” hypothesis of firm survival. Effects are found to be more pronounced for formally registered and larger firms, explained by their greater bargaining power vis-à-vis public officials. Moreover, bribery as a “risk-of-exit” reducing strategy is found only for firms not institutionally or financially constrained and for firms operating in sectors with low levels of competition. |
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Keywords: | bribery survival analysis the semi-parametric and parametric model Vietnam's enterprise |
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