In the last decade, a growing number of studies have addressed the ongoing debate about whether corruption “sands” or “greases” the wheels of business at the firm level. This study revisits this debate and proposes a comprehensive theoretical framework to test whether corruption harms or boosts firm performance, as well as the extent to which this relationship is mediated by the countries’ institutional settings, the size and strategic behaviour of the firms, and market competition. Based on a sample of 21,250 firms located in 117 emerging and developing countries, and resorting to instrumental variable (IV) estimations, three main results were found: (a) regardless of the proxy used for corruption and firm performance, the former clearly harms the latter; (b) corruption “greases the wheels” of business for African firms but it “sands the wheels” for firms in Latin America, the Caribbean, Eastern Europe, Central Asia, and Southern Asia; and (c) the negative impact of corruption on performance is mitigated for larger and exporting firms.
International research collaboration (IRC) has been relevant for the development of national scientific systems. In Africa, given the limited resources devoted to research and development (R&D) activities and the crucial role that scientific knowledge generated through research activities can have in socioeconomic development, IRC may be an opportunity to strengthen scientific capabilities. While geographical, economic, political/governance, cultural, intellectual and excellence distance hampers IRC in other regions, we argue that economic and excellence distances actuate differently in Africa. We explored the impact of the variables above in addition to the information and communication technologies (ICTs), and social distances on the IRC of these countries. Using panel data for 54 African economies, our results show that economic distance fosters IRC while governance and excellence distances are non-significant. Past collaborations (one out of two proxies for social distance) and speaking the same language have the highest effect on IRC, and ICTs distance the lowest. The results have implications for science policy in Africa. For instance, we argue that science policies need to be adapted to each environment as the scientific landscape in each country is unique.
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