Which entrepreneurs bribe and what do they get from it?

Bribery is key for entrepreneurs who operate in a business environment with insufficient formal institutions, and that is dominated by a dual market structure and powerful government officials. ‘Bribes enable entrepreneurs to use government resources, avoid red tape and thus foster revenues’, says dr. Gjalt de Jong. ‘We suggest, however, that bribes are subject to diminishing returns because high levels of bribes increasingly absorb the returns on entrepreneurial activities, and distort entrepreneurial spirit and behavior.’ De Jong is first author of the paper Which entrepreneurs bribe and what do they get from it? Exploratory evidence from Vietnam, which is the next FEB Publication of the Month.