Government efficiency and corruption: A country-level study with implications for entrepreneurship

If and how the efficiency of governments plays a role in determining relationships between corruption and entrepreneurship has not been examined at length. The empirical findings on control of corruption are inconclusive, and our knowledge regarding the moderation of efficient or less-efficient governments is rather limited. Using a multisource panel dataset of 59 countries, we find that any conclusion suggesting that corruption is universally good or bad for entrepreneurship may risk being overstated because the degree to which governments are efficient moderates the nonlinear effects of control of corruption on entrepreneurship.