Abstract
In this research paper is analyzed corruption and bribery on transition economies with case study of SEE countries and the main theoretical arguments for discussions are as following: the effect of corruption in economic growth, mobilization of different countries or institutions against corruption (prevent corruption through institutional policies and anti - corruption programs), the level of corruption in SEE countries, effect of corruption in public sector and in economic efficiency. In methodology, the secondary data that used are collected from international institutions and they are calculated through STATA program. The main analyses are descriptive statistic, OLS method of regression and correlation matrix. The variables that are used in research paper are: corruption and bribery & bureaucracy costs (as dependent variable), then economic growth, political stability, economic freedom, transition reforms and education index (as independent variables). Based on empirical results, in the OLS analysis is found that corruption has positive impact on economic growth but bribery and has negative impact on economic growth of SEE countries then in T-statistic analysis all independent variables have shown negative significance (T DOI: 10.5901/ajis.2015.v4n2p45
Highlights
In the recent decades, corruption is become the most important issue for transition economies
In OLS method are realized two regression analysis between dependent variables and independent variables: The first regression analysis is between corruption and independent variables and the results have found that Economic Growth has positive impact (ȕ1 = 0.74) on corruption
The second regression analysis in table 3 is between bribery and bureaucracy costs as dependent variable and other independent variables and the results have found that Economic Growth has negative impact (ȕ1 = -1.30) on bribery and bureaucracy costs
Summary
Corruption is become the most important issue for transition economies. During the transition processes in SEE countries, corruption has been constantly a phenomenon accompanying from communist regime to liberalization markets. It has had an effect on low institutional performance, lack of transparency in public sector and distrust of the citizens towards in government institutions, (SELDI Report, 2002) & (Svendsen, G.T., 2003). According to (World Bank Report, 2011) corruption has not been only obstacle in SEE economies, so as other obstacle identified bribery (administrative bribes) and unofficial payments in very sensitive institutions, such as: areas of taxes, customs, imports and courts but recently SEE countries have started to improve in context of bribery. Most of SEE countries are oriented to prevent or fight corruption (bribery) through three general categories: fight against corruption by government institutions (different agencies), different structural reforms in institutions for reducing corruption, membership in international organization (such as: UN, EU) to prevent corruption, (Ewoh et al, 2013)
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