Greasing the wheels? The impact of regulations and corruption on firm entry

This paper investigates the question of whether corruption might ‘grease the wheels’ of an economy. We investigate whether and to what extent the impact of regulations on entrepreneurship is dependent on corruption. We first test whether regulations robustly deter firm entry into markets. Our results show that the existence of a larger number of procedures required to start a business, as well as larger minimum capital requirements are detrimental to entrepreneurship. Second, we test whether corruption reduces the negative impact of regulations on entrepreneurship in highly regulated economies. Our empirical analysis, covering a maximum of 43 countries over the 2003–2005 period, shows that corruption facilitates firm entry in highly regulated economies. For example, the ‘greasing’ effect of corruption kicks in at around 50 days required to start a new business. Our results thus provide support for the ‘grease the wheels’ hypothesis.

Language learning in the public eye: an analysis of newspapers and official documents in England

This article considers the issue of low levels of motivation for foreign language learning in England by exploring how language learning is conceptualised by different key voices in that country through the examination of written data: policy documents and reports on the UK's language needs, curriculum documents, and press articles. The extent to which this conceptualisation has changed over time is explored, through the consideration of documents from two time points, before and after a change in government in the UK. The study uses corpus analysis methods in this exploration. The picture that emerges is a complex one regarding how the 'problems' and 'solutions' surrounding language learning in that context are presented in public discourse. This, we conclude, has implications for the likely success of measures adopted to increase language learning uptake in that context.

Official use of social network sites by African universities

The use of social network sites (SNS) has become very valuable to educational institutions. Some universities have formally integrated these social media in their educational systems and are using them to improve their service delivery. The main aim of this study was to establish whether African universities have embraced this emerging technology by having official presence on SNS. A purposive sampling method was used to study 24 universities from which data were obtained by visiting their official websites and following the official links to the most common SNS.

Uptake of agri-environmental schemes in the Less-Favoured Areas of Greece: The role of corruption and farmers' responses to the financial crisis

Vine-growing in the Less-Favoured Areas of Greece is facing multiple challenges that might lead to its abandonment. In an attempt to maintain rural populations, Rural Development Schemes have been created that offer the opportunity to rural households to maintain or expand their farming businesses including vine-growing. This paper stems from a study that used data from a cross-sectional survey of 204 farmers to investigate how farming systems and farmers’ perception of corruption, amongst other socio-economic factors, affected their decisions to continue vine-growing through participation in Rural Development Schemes, in three remote Less-Favoured Areas of Greece. The Theory of Planned Behaviour was used to frame the research problem with the assumption being that an individual’s intention to participate in a Scheme is based on their prior beliefs about it. Data from the survey were reduced and simplified by the use of non-linear principal component analysis. The ensuing variables were used in selectivity corrected ordered probit models to reveal farmers’ attitudes towards viticulture and rural development. It was found that economic factors, perceived corruption and farmers’ attitudes were significant determinants on whether to participate in the Schemes. The research findings highlight the important role of perceived corruption and the need for policies that facilitate farmers’ access to decision making centres.

Parliamentarians and corruption in Africa: the challenge of leadership and the practice of politics

This report, compiled on behalf of the African Parliamentary Network Against Corruption (APNAC), surveys the attitudes of African parliamentarians toward corruption. It is the first study of its kind to investigate the manner in which corruption impacts directly upon the political behaviour, practices and attitudes of those elected members sitting in parliaments across the continent. If the problems of corruption are to be tackled in the African continent, then the role of elected members of legislative assemblies will surely be a crucial factor.

Does corruption matter for international entrepreneurship?

This study asks how key regulations influence nascent international entrepreneurship in countries with varying levels of corruption. Using regulatory capture theory and institutional theory, we hypothesize and test the effects of tax, export regulations, and corruption, on international entrepreneurship. We consider direct effects of these regulations as well as a possible moderating effect of corruption on nascent international entrepreneurship. Our findings indicate that the effect of regulations on international nascent entrepreneurship vary depending on types of regulation. Interestingly, we find that corruption plays a dual role, serving as both grease and sand for nascent international entrepreneurship. Corruption worsens the burden of regulations which have financial costs element. Another interesting finding is that corporate tax is not a significant deterrent factor for IE when corruption is low.

Taxes, corruption, and entry

Tax policies and corruption are important institutional considerations which can shape entrepreneurship. We investigate how tax rates, and the interaction between corruption and tax rates, influence variations in entry across a panel of 72 countries in the period 2005–2011. We use a series of panel estimations as well as several robustness checks to test these effects, using relevant controls for economic development, the size of the state, and other regulatory and tax policy measures. We find that higher tax rates consistently discourage entry. Further, we find that although the direct influence of corruption on entry is also consistently negative, the interaction influence of corruption and tax rate is positive. This indicates that corruption can offset the negative influence of high taxes on entry. We discuss the implications of our findings for policymakers and future research.