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The Impact of Personal Relationships on Bribery Incidence in Transition Economies
Author(s) -
Jong Gjalt,
Tu Phan Anh,
Ees Hans
Publication year - 2014
Publication title -
european management review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.784
H-Index - 32
eISSN - 1740-4762
pISSN - 1740-4754
DOI - 10.1111/emre.12032
Subject(s) - language change , government (linguistics) , database transaction , business , transaction cost , transition (genetics) , economics , finance , art , linguistics , philosophy , biochemistry , chemistry , literature , computer science , gene , programming language
Prior work on corruption has largely overlooked personal relationships as an essential determinant of bribery incidence in transition economies. In these countries, relationships with public officials are instrumental in enabling transactions and lowering transaction costs, due to incoherent and ever‐changing business regulations. Our study examines the impact of personal relationships on bribery incidence in V ietnam, finding that relationships with central government officials decreases the likelihood of bribery, while relationships with local government officials increases the likelihood of bribery. The results provide convincing support for the alleged importance of public‐private relationships in contemporary transition economies.