ABSTRACT

This chapter investigate how corruption affects the adoption of better management practices. The link between corruption and development has been broadly studied in the literature, predicting that some countries with poor economic performance also suffer from severe corruption. Corruption is often a deterrent for entrepreneurial activity, decreasing the overall business activity. Yakovlev and Zhuravskaya, document unequal effects of drastic business liberalization in Russia, providing evidence of one of the channels through which local institutions affect the results of liberalization, namely the level of enforcement. The chapter discusses the effects of the local dimension of corruption on firm management quality within the manufacturing sector in Turkey. In the fight against corruption, Turkey has partially managed to effectively prevent and fight corruption, but Turkey's track record still remains inadequate at this point in time. In 2016, the Transparency International report highlighted that the fight against corruption in Turkey has been largely failing.