Regulatory context and corruption: rethinking the effects of government intervention

Kamel Mellahi, Mehmet Demirbag, Geoffrey Wood

    Research output: Contribution to journalArticle

    5 Citations (Scopus)

    Abstract

    We examine relationships between regulatory environment and government intervention in firms' decisions and corruption perception indexes (CPI). We draw from a large sample survey conducted by the World Bank on the impact of regulatory environment on firms' growth. The study also focuses on government interventions through regulations in firms' operational and strategic decisions. The study uses the World Business Environment Survey 1999-2000 database. Our findings indicate that whereas intervention in certain regulatory and decision areas increases the likelihood of deterioration of CPI for liberal market economies and coordinated market economies, in some cases intervention decreases the likelihood of CPI deterioration for transitional economies, particularly those are categorized as highly corrupt countries.
    Original languageEnglish
    Pages (from-to)13-34
    Number of pages22
    JournalInternational Studies of Management and Organization
    Volume42
    Issue number3
    DOIs
    Publication statusPublished - 2012

    Keywords

    • corruption
    • business expansion
    • capitalism
    • rational choice theory

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