Naslov
Does the (Mis)Trust in Public Institutions Lead to Greater Prevalence of the 'Economy of Favours' in the European Union Societies: A Business Sector Perspective

Autori
Šimić Banović, Ružica ; Čeh Časni, Anita ; Vučković, Valentina

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Interdisciplinary Management Research XVI / Barković, Dražen ; Dernoscheg, Karl - Heinz ; Erceg, Aleksandar ; Glavaš, Jerko ; Pap, Norbert ; Runzheimer, Bodo ; Wentzel, Dirk - Opatija : Ekonomski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku ; Hochschule Pforzheim University of Applied Sciences ; Hrvatska akademija znanosti i umjetnosti (HAZU), 2020, 1151-1167

Skup
16th Interdisciplinary Management Research (IMR 2020)

Mjesto i datum
Opatija, Hrvatska, 07.05.2020. - 09.05.2020

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
institutions ; trust ; European Union ; postsocialism ; economy of favours

Sažetak
The interactions between economic, social and political factors have been increasingly researched in order to enhance the understanding of the (postsocialist) business environment. Namely, despite the EU membership of most East European countries, the gap between formal and informal institutions is increasing. Simultaneously, despite the change of the system, the practices based on redistribution of public resources appears to be omnipresent in postsocialist societies. The use of personal relations appears to be rising. In addition, it reflects the predominant features of national mind-sets already identified in the postsocialist business environments and shown to be negatively correlated with competitiveness. These include collectivism, high power distance, indulgence versus restraint and uncertainty avoidance. Predominantly based on the business executives survey done by WEF, this paper contributes to the debate on the resistance of informal institutions in the macroeconomic business environment. More precisely, this study examines the long-run and the short-run relationship between trust in public institutions (including rule of law and judicial independence), informal practices and economic development. In order to assess this relation empirically, the pooled mean group estimator of dynamic heterogeneous panel data on the sample of selected European countries is used. Hence, this article adds to our understanding of informal practices as indicators of weaknesses in society’s official structure. Moreover, it provides empirical evidence of the role of informal practices as complements or substitutes to the official economy depending on country’s level of economic development and its (mal)functioning or underdeveloped rule of law.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

Napomena
Međunarodna konferencija

POVEZANOST RADA