Politická ekonomie 2018, 66(3):287-301 | DOI: 10.18267/j.polek.1189

Investiční rozhodování firem v korupčním prostředí ve střední a východní Evropě

Jan Hanousek1, Anastasiya Shamshur2, Jiří Trešl3
1 Jan Hanousek (jan.hanousek@cerge-ei.cz), CERGE-EI, společné pracoviště UK v Praze a NHÚ AV ČR, v. v. i., a CEPR, London
2 Anastasiya Shamshur (A.Shamshur@uea.ac.uk), Norwich Business School, University of East Anglia, Norwich; CERGE-EI, společné pracoviště UK a NHÚ AV ČR, v. v. i.
3 Jiří Trešl (tresl1j@cmich.edu), Central Michigan University, Mount Pleasant, MI 48859; CERGE-EI, společné pracoviště UK v Praze a NHÚ AV ČR, v. v. i.

Innovation Decisions in Uncertain Business Environments of CEE Countries

Corporate innovations are a central part of a country's economic activity. They foster and improve competitiveness, which ultimately leads to economic growth and progress. In this study, we focus on the post-communist European region, where corporations operate under uncertain conditions. Utilizing a sample with almost 100,000 firm level observations over the period from 2001 to 2013, we analyse effects of uncertainty steaming from corruption environment on innovation decisions of the Central European private firms. We find that domestic firms and firms with dispersed ownership innovate less when business and municipal uncertainty conditions increase. When firms are unsure whether they will be blocked by local bureaucrats from capitalizing on their innovation, they scale down their efforts. However, this result disappears for firms with foreign majority ownership. We hypothesize that foreign controlled firms have cleared all uncertainties before they entered the foreign market.

Keywords: corruption, firms, panel data, innovations; Europe
JEL classification: C58, D22, F23, G32

Accepted: May 18, 2018; Published: June 1, 2018  Show citation

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Hanousek, J., Shamshur, A., & Trešl, J. (2018). Innovation Decisions in Uncertain Business Environments of CEE Countries. Politická ekonomie, 66(3), 287-301. doi: 10.18267/j.polek.1189
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