The impact of corruption on resident entrepreneurship behavior and its mediating effect analysis: An empirical study based on China

Abstract

This study utilizes data from the 2015 China General Social Survey (CGSS) to investigate the impact of public sector corruption on resident entrepreneurship, including an analysis of heterogeneity among different types of entrepreneurs and the mediating effects of social networks and social trust. The findings reveal that while corruption may exhibit a certain inflection point effect on entrepreneurship, this effect is statistically insignificant due to the relatively low threshold of corruption. Overall, increasing levels of corruption significantly inhibit entrepreneurial choices among residents, particularly affecting “survival-oriented” and “out of system” entrepreneurs compared to “opportunity-oriented” and “within system” entrepreneurs. Furthermore, the study identifies that both objective social networks and subjective social trust serve as significant partial mediators in the relationship between corruption and entrepreneurship. Based on these insights, the paper recommends implementing robust anti-corruption measures, enhancing support for survival-oriented entrepreneurs, and fostering social trust to create a conducive environment for entrepreneurship.