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Corruption and private participation infrastructure projects: The influence of vicarious experience and national animosity
Author(s) -
Jiménez Alfredo,
Bayraktar Secil,
PucheRegaliza Julio César,
Herrero Alvaro
Publication year - 2020
Publication title -
canadian journal of administrative sciences / revue canadienne des sciences de l'administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.347
H-Index - 48
eISSN - 1936-4490
pISSN - 0825-0383
DOI - 10.1002/cjas.1569
Subject(s) - language change , business , private sector , public economics , public relations , marketing , economic growth , economics , political science , art , literature
This paper investigates the influence of vicarious experience and national animosity on the relationship between corruption and the performance of private participation infrastructure projects. Our analysis of 27,264 projects in 114 countries from 1997 to 2013 shows that higher levels of corruption are associated with higher risk of project failure. We also find that this effect is weakened by the presence of other firms from the same industry, as firms may learn from other companies how to deal with corruption. In contrast, we find the effect is strengthened by the presence of other firms from different industries. This result is due to a lower applicability of knowledge and to an increase in national animosity and discrimination from local stakeholders.