Corruption’s Effect on Business Venturing within the U.S. States

American Journal of Economics and Sociology, Vol. 68, No. 5, p. 1136, November 2009

18 Pages Posted: 13 Nov 2010

See all articles by David T. Mitchell

David T. Mitchell

University of Central Arkansas

Noel D. Campbell

University of Central Arkansas

Date Written: May 10, 2009

Abstract

ABSTRACT. In developing countries with high levels of corruption, people are often forced into small-business venturing or survivalist entrepreneurship because larger, more efficient firms do not exist. In developed countries, however, low corruption means that people choose entrepreneurship as a better means of innovating. In this article we use federal convictions of state and local officials and the Small Business Administration’s firm formation data to test whether corruption within the United States forces some people into business venturing. We find that business venturing within the United States is caused in part by corruption.

Keywords: Corruption, Entrepreneurship, Business Venturing

Suggested Citation

Mitchell, David T. and Campbell, Noel D., Corruption’s Effect on Business Venturing within the U.S. States (May 10, 2009). American Journal of Economics and Sociology, Vol. 68, No. 5, p. 1136, November 2009, Available at SSRN: https://ssrn.com/abstract=1402264

David T. Mitchell (Contact Author)

University of Central Arkansas ( email )

201 Donagehy Ave.
Conway, AR 72035-0001
United States

HOME PAGE: http://uca.edu/efirm/facultystaff/dmitchell/

Noel D. Campbell

University of Central Arkansas ( email )

Conway, AR 72032
United States
(501)852-7743 (Phone)

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