
Roberto Iorio
Associate Professor of Applied Economics
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paper by Roberto Iorio
ative standpoint, demonstrating that the relationship is undoubtedly heterogeneous between busi-
nesses and nations. There are two primary research questions addressed: i) In the countries under inspection does corruption help or hinder the innovative activities? ii) To what degree is the insti-
tutional framework and business strategy (domestic and international presence) influencing the re-
lationship between corruption and innovation? We use the V and VI surveys (2012–2016 and 2018–
2019) of EBRD-World Bank Business Environment and Performance Survey, with a balanced panel with 3584 establishments across 22 countries, economies of Eastern Europe and Central Asia. The findings show two key points about the link between corruption and innovation: (1) the importance of institutional settings for the link’s strength and even direction when EU and non-EU countries are compared and (2) the diverse effects of corruption at the firm-level, when foreign and domestic ownership is considered: the “greasing” effect is particularly relevant for foreign firms in weak institutional environments but appears useless, if not sanding, for foreign firms in settings with stronger controls over corruption.
Papers by Roberto Iorio
ative standpoint, demonstrating that the relationship is undoubtedly heterogeneous between busi-
nesses and nations. There are two primary research questions addressed: i) In the countries under inspection does corruption help or hinder the innovative activities? ii) To what degree is the insti-
tutional framework and business strategy (domestic and international presence) influencing the re-
lationship between corruption and innovation? We use the V and VI surveys (2012–2016 and 2018–
2019) of EBRD-World Bank Business Environment and Performance Survey, with a balanced panel with 3584 establishments across 22 countries, economies of Eastern Europe and Central Asia. The findings show two key points about the link between corruption and innovation: (1) the importance of institutional settings for the link’s strength and even direction when EU and non-EU countries are compared and (2) the diverse effects of corruption at the firm-level, when foreign and domestic ownership is considered: the “greasing” effect is particularly relevant for foreign firms in weak institutional environments but appears useless, if not sanding, for foreign firms in settings with stronger controls over corruption.