Munich Personal RePEc Archive

Does innovation foster or mitigate the corruption obstacle? Firm-level evidence from Tunisia

Sdiri, Hanen and Ayadi, Mohamed (2016): Does innovation foster or mitigate the corruption obstacle? Firm-level evidence from Tunisia.

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Abstract

The aim of this paper is to analyze the extent to which Tunisian firms regard corruption as a major obstacle to their product and process innovation. Using firm-level data from the World Bank Enterprise Survey conducted in 2013, we empirically test how innovation accentuates or mitigates the corruption obstacle. We show that innovation has a negative and statistically significant effect on the corruption obstacle. Besides, we prove that competition and the obstacle to corruption are negatively related. This result teaches that the Tunisian firms face a rent-shifting corruption.

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