Abstract
ABSTRACT Corruption and informality in business are research topics that have previously received less attention among scholars, especially in Southeast Europe. To fill this gap, and to bring some clarity to the phenomena of corruption and informality in the private sector, this article addresses the extent and manifestations of corrupt and informal practices in business in two post-socialist countries of ex-Yugoslavia, Serbia and Croatia. Analysis is performed on primary data from surveys of businesspeople in both countries, with the main aim of revealing their understanding and acceptance of illicit practices and determinants of businesspeople informal behaviour in the SME sector. The acceptance of four types of informal practices, namely: treating, giving and receiving gifts, networks, and favouring, is modelled using Probit estimation technique. The results reveal that the corrupt behaviour of businesspeople in two observed countries is related to their acceptance of informal practices. Additionally, the manifestations of these practices in real business-to-business and business-to-government relations are shown.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
