Skip to main content

Does corruption cause encumbered business regulations? An IV approach

Buy Article:

$53.17 plus tax (Refund Policy)


In this research we attempt to understand the effects of corruption on business regulations measured by number of procedures, time and costs involved in satisfying governmental requisites. Using Two-Stage-Least Squares (2SLS) methods we lessen the problems associated with endogeneity and uncovered the existence of a robust, positive, statistically significant and quantitatively large direction channel from corruption to encumbered business regulations. These results suggest the need to deter corruption in order to improve business regulations. The quest to reduce corruption worldwide acquires new relevancy given the findings of Djankov et al. (2006) that countries with simple and transparent regulations grow faster.

Keywords: D73; K42; O5; business regulations; corruption; instrumental variables

Document Type: Research Article


Affiliations: 1: Department of Finance, IESA, PO Box 02 5255MiamiFL 33102-5255, USA 2: Department of Mathematics and Statistics,Universidad Simon Bolívar, Caracas, Venezuela 3: Barna School of Business, Santo Domingo, Dominican Republic 4: Industrias Metálicas Special CA, Valencia, Venezuela 5: Universidad Teconológica del Centro, Information and Engineering, Valencia, Venezuela

Publication date: January 1, 2013

More about this publication?

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Partial Open Access Content
Partial Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more