Which Entrepreneurs Bribe and What Do They Get From It? Exploratory Evidence From Vietnam


Gjalt de Jong, tel.: (50) 363-3381; e-mail: g.de.jong@rug.nl, to Phan Anh Tu at t.phan@rug.nl, and to Hans van Ees at h.van.ees@rug.nl.


This article investigates whether bribery in emerging economies matters and whether such bribery has a diminishing return to performance. Bribery allows entrepreneurs to develop and foster a network of informal relationships with public officials, and reap the accompanying benefits; but it may also have disadvantages, such as an inefficient allocation of resources. The relationship between bribery and performance was estimated using unique data derived from a survey of 606 Vietnamese entrepreneurs. We controlled for various entrepreneurial, organizational, and industrial characteristics. The exploratory results provide support for a hill-shaped non-monotonic relationship between bribery and revenues.