Despite the growing interest in understanding the effects of income inequality on economic growth, the influence of entrepreneurship-related institutional constraints on the inequality–growth association remains less understood. Drawing on an institutional constraints perspective in the context of startup entry regulation and credit constraints, we propose that under increasing income inequality, ease of startup or access to credit from the financial sector is positively associated with per capita economic growth. In a sample of 92 countries, robust to alternate specifications, we find (...) support for our hypotheses. Our findings contribute to the debates about the income inequality–growth nexus and imply potential policy interventions in the form of lower startup regulations and domestic credit provision from the financial sector to enhance economic growth under increasing economic inequality. (shrink)

Corrupt regulatory environment encourages firms to deploy middlemen for speedy and assured acquisition of different services from regulatory agencies. Using a World Bank dataset of 2210 Indian manufacturing firms, this article examines how firms with middlemen deal with corrupt governmental agencies for its operational efficiency. Our results demonstrate that deployment of middlemen by the firms is often accompanied by a substantial increase in operational delay, relatively trigger more consumption of senior management’s time on regulatory disentanglement, enhance the likelihood/tendency to pay (...) bribe, and likely to face more court cases as a means of restitution of legal rights. As firm-specific attributes may contaminate our preliminary results, we utilized the propensity score framework to examine relationships among variables of interests. Our study contributes to the inconspicuous part of the corruption literature by attempting to present a comprehensive but indirect assessment of the functions of middlemen that predominantly remained unattended except some scattered descriptive, case-based anecdotal presentations. (shrink)

This essay argues for the conceptual connection of legitimacy, resistance and ‘the people’ within liberal theories of public justification by making two primary claims: that legitimacy and resistance are mutually constitutive of one another and that together legitimacy and resistance are constitutive of an aspirational conception of ‘the people’. These claims revolve around the idea that the legitimacy of democratic regimes necessarily entails the questioning of that legitimacy through resistance, which concerns demands that say something about the makeup of ‘the (...) people’. The concern is conceptual, examples of resistance showing how the conceptual connection manifests itself. (shrink)

Using the arguments of Ludwig von Mises and Friedrich August von Hayek, I argue that private ownership solves the economic problem of corruption. Since private ownership discourages entrepreneurs from rent-seeking, and privately owned media provide objective and unbiased information to citizens, any legal reform establishing and enforcement of private ownership also solves the corruption problem.

Although the managerial practice of cheating spans complex and heterogeneous situations, most business ethics scholars consider that the very idea of cheating is indefensible on moral grounds, and quickly dismiss it as wrongdoing. This paper proposes to fine-tune this conventional moral assessment by arguing that some forms of cheating can be justified—or at least excused. To do so, it starts with a value-free definition of cheating that covers a wide diversity of situations: “breaking the rules while deliberately leading or allowing (...) others to think they have been respected.” While using this definition at the metaethical level, the paper contends that the moral assessment of cheating depends on the obligation to comply with the rules. There are rules which do not entail moral obligations, and there are special circumstances where other more important obligations override the obligation to comply with the rules. Furthermore, the paper argues that respecting the penalty rules also influences the moral assessment of cheating on the rules. The key interest of this endeavor lies in contributing to building a more solid theoretical framework for the study of cheating in management, which may replace our common prejudices and basic intuitions on this matter. (shrink)

The pace, the scale, the nature and the reach of social transformation are such that moments of destruction and moments of creation succeed each other in a frantic rhythm without leaving time or space for moments of stabilization and consolidation. This is precisely why I characterize the current period as one of transition.

Scholars have recognized that contentious political action typically draws on relatively stable scripts for the enactment of claims making. But if such repertoires of political practice are generally reproduced over time, why and how do new modes of practice emerge? Employing a pragmatist perspective on social action, this article argues that change in political repertoires can be usefully understood as a result of situated political innovation—i.e., of the creative recombination of existing practices, through experimentation over time, by interacting political agents (...) for whom old repertoires were proving inadequate to the changing context of action. The utility of this approach is demonstrated by applying it to explain the historical emergence of a new set of populist mobilizing practices in early twentieth-century Peru. The results have implications for the study of political action and historical change. (shrink)

Scholars have debated the meaning of the foreign-relations clauses in the U.S. Constitution. This essay attempts to outline the foreign-relations clauses that an ideal constitution should have. A liberal constitution must enable the government to implement a morally defensible foreign policy. The first priority is the defense of liberty. The constitution must allow the government to effectively defend persons, territory, and liberal institutions themselves. The liberal government should also contribute to the advancement of global freedom, subject to a number of (...) conditions, especially cost. The essay recommends improved methods to incorporate treaties and customary international law into the constitutional structure. Treaties should be approved by the whole legislature and should generally be self-executing. Customary law should be genuine, not fake, and consistent with liberal principles. Finally, based on economic theory and evidence, the essay recommends that liberal constitutions prohibit the government from erecting trade barriers. It concludes by tentatively proposing concrete constitutional language to implement these recommendations. (shrink)

On 19 October 2013, the Chinese government issued the Opinions on Further Regulation on Party and Political Leaders and Cadres Working Part-Time in Enterprises, also known as the 18th Decree, to regulate government officials’ employment with businesses. The 18th Decree is widely perceived as having had a significant impact on the use of independent directors with political backgrounds by firms, given the prevalence of this business practice. This paper examines the market reaction to the 18th Decree to ascertain the value (...) effect of political connections in China. We note a negative relationship between the political connections of independent directors and market reaction. We also note that the negative relationship between political connections and market reaction is moderated by ownership type and state of regional development. Specifically, we find that the negative relationship holds only for private firms in less developed regions. These results support our prediction that political connections add value to Chinese firms and that the value effect of political connection is contingent on institutional factors. (shrink)

The World Bank’s premise that “gender equality is good business” characterizes the current gender and economic development model. Policymakers and development practitioners promote and encourage women’s entrepreneurialism from the conviction that increasing women’s market-based opportunities is key to lifting women, their families, and communities out of poverty, resulting in the construction of a gendered entrepreneurial subject. Based on ethnographic fieldwork and interviews with home-based garment workers in Ahmedabad, India, this article questions the portrayal of women informal workers as entrepreneurs. Employing (...) a social reproduction framework, I argue that the exploitative characteristics of informal work are falsely interpreted as features of entrepreneurialism. Because work is completed in the worker’s own home, work and care become a mutual burden in which woman’s sense of providing for her family is impeded by both these roles. A feminist social reproduction framework of embodied labor links women’s responsibility for and contribution to family well-being with women’s marginalized economic position. Examining home-based work through this lens reveals the contradiction of the entrepreneurialism discourse. (shrink)

It is nowadays widely understood that undeclared work cannot be efficiently combated without a holistic view on the mechanisms underlying its existence. However, the question remains whether we possess all the pieces of the holistic puzzle. To fill the gap, in this paper, we test if the features so far known to affect the behaviour of taxpayers are sufficient to detect noncompliance with outstanding precision. This is done by training seven supervised machine learning models on the compilation of data from (...) the 2019 Special Eurobarometer on undeclared work and relevant figures from other sources. The conducted analysis not only does attest to the completeness of our knowledge concerning the drivers of undeclared work but also paves the way for wide usage of artificial intelligence in monitoring and confronting this detrimental practice. The study, however, exposes the necessity of having at disposal considerably larger datasets compared to those currently available if successful real-world applications of machine learning are to be achieved in this field. Alongside the apparent theoretical contribution, this paper is thus also expected to be of particular importance for policymakers, whose efforts to tackle tax evasion will have to be expedited in the period after the COVID-19 pandemic. (shrink)