Abstract
In this paper, we provide novel evidence on the adjustment of multinational enterprises (MNEs) to corrupt environments. We examine if the corruption barrier to entry is reduced by corruption experience (i.e., previous investment in a corrupt system) using a rich enterprise data set on Swedish manufacturers’ activities in the 1997–2015 period. A mixed logit model, which accounts for enterprise-specific market substitution patterns, is used to ensure the accuracy of estimates. Our findings show that a strong deterrent effect of corruption is counteracted by corruption experience, which implies that MNEs learn to adjust to reduce corruption entry costs. Multinational enterprises that acquire corruption experience gain a competitive advantage over other enterprises.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
