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PERCEIVED CORRUPTION IN BUSINESS ENVIRONMENT: EXPLORING THE UNDERLYING CAUSES

Marija Džunić, Nataša Golubović

Business environment is An important determinant of national competitiveness and sustainable long-term economic growth. Business environment quality determines the risk as well as returns from investment and therefore affects investment decisions. The business environment is largely, if not totally, beyond the control of the firms and their management. It results from existing political, legal and regulatory framework; macroeconomic policies; institutional infrastructure; social and cultural context within which transactions take place, the quality of physical and social infrastructure and many other factors. Empirical research has shown that corruption represents a serious obstacle to entrepreneurship and business (Kaufmann & Wei, 2000; Meon & Sekkat, 2005). Hellman et al. (2000) consider corruption, in addition to governance quality and state capture, a factor that significantly shapes business environment in transition countries.
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QUANTIFYING CORRUPTION AT A SUBNATIONAL LEVEL

Veronika Linhartová, Jolana Volejníková

Corruption and its potential reduction is a constant topic not only of economic or social science research, but also an issue that plagues governments and citizens alike. This phenomenon is more or less immanent in every social system, regardless of the size and sophistication of the country or culture of the nation.
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