Browsing by Author "Aghazada, Elchin"

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Corruption and firm innovation: evidence from post-Soviet countries
(2021) Aghazada, Elchin; Ashyrov, Gaygysyz
In view of the missing consensus on how corruption relates to firm innovation, this paper empirically studies the relationship between petty corruption and product, process, marketing and organizational innovations in the post-Soviet region. Exploiting crosssectional firm-level data from the fifth round of the Business Environment and Enterprise Performance Survey (BEEPS V), the paper argues that institutional context has utmost importance when approaching this link. Probit estimations for a full sample of post-Soviet countries indicate a positive link between bribes and firm innovation. Considering variations in institutional development levels, the paper distinguishes three clusters of countries within the region with respect to the quality of institutional structures based on Worldwide Governance Indicators (WGI) data from the World Bank. The results reveal that the greasethe- wheel effect of bribery on firm innovation strongly remains in countries with weak institutional quality. To explore this link further, the paper made several additional estimations and robustness checks.
Corruption and types of innovation: evidence from post-Soviet countries
(Tartu Ülikool, 2020) Aghazada, Elchin; Ashyrov, Gaygysyz, juhendaja; Tartu Ülikool. Majandusteaduskond; Tartu Ülikool. Sotsiaalteaduste valdkond
In the view of a missing consensus on how corruption relates to firm innovation, this paper empirically studies the relationship between petty corruption and product, process, marketing and organizational innovations in post-Soviet region. Exploiting cross-sectional firm-level data from the fifth round of Business Environment and Enterprise Performance Survey (BEEPS V), the paper finds that bribery increases the probability of introducing all four innovation types in the overall post-Soviet region. Considering variations in institutional development levels, the paper distinguishes three clusters of countries within the region respect to the quality of institutional structures based on Worldwide Governance Indicators (WGI) data of World Bank. Results reveal that bribery “greases the wheels” of only organizational innovation in the countries with strong institutional environment. The paper suggests that while the quality of institutions are good enough to prevent using bribery as a tool to foster product, process and marketing innovations, there is still room for improving institutions concerning organizational innovation. In the countries with moderate institutions, the correlation between bribery and product innovation is positive and statistically significant. Institutions concerning product innovations ought to be strengthened in this country cluster. Similar to the overall post-Soviet region, bribery encourages all four innovation types in the countries with weak institutional structures. So, fight against corruption needs to be braced and institutions should be improved to adhere global standards in order to halt corruption’s positive link to firm innovation.
Role of institutions in the corruption and firm innovation nexus: evidence from former Soviet Union countries
(2022) Aghazada, Elchin; Ashyrov, Gaygysyz
In view of the missing consensus on how corruption relates to firm innovation, this paper empirically studies the relationship between petty corruption and product, process, marketing and organizational innovations in the post-Soviet region. Exploiting cross-sectional firm-level data from the fifth round of the Business Environment and Enterprise Performance Survey (BEEPS V), the paper argues that institutional context has utmost importance when approaching this link. Probit estimations for a full sample of post-Soviet countries indicate a positive link between bribes and firm innovation. Considering variations in institutional development levels, the paper distinguishes three clusters of countries within the region with respect to the quality of institutional structures based on Worldwide Governance Indicators (WGI) data from the World Bank. The results reveal that the grease-the-wheel effect of bribery on firm innovation strongly remains in countries with weak institutional quality. To explore this link further, the paper made several additional estimations and robustness checks.