Corruption and Innovation: The Case of EECA Countries

Abstract

Although the effect of corruption on country-level investment is studied widely in literature, only a limited number of research has sought to understand how corruption affects firm-level innovation. Using firm-level data for twenty seven Eastern European and Central Asian countries, we empirically investigate how corruption affects innovation. We find that corruption has a positive effect on the rate of innovation. This finding is robust to alternative measurement proxies.

Keywords

• Innovation,Corruption,EECA

Corruption and Innovation: The Case of EECA Countries

Abstract

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