The effects of economic freedom on institutional performance in the Western Balkans countries
by Qerim Qerimi; Bruno S. Sergi
International Journal of Business Governance and Ethics (IJBGE), Vol. 7, No. 1, 2012

Abstract: Recognising the indispensable role of fighting corruption in the quest for, and measure of, effective institutions, this paper looks into unrecognised or neglected interrelations between corruption and other pertinent indicators that could enhance institutional performance. In particular, it focuses on the correlation, as opposed to causation, that exists between economic freedom and corruption. It situates the inquiry in the societies in transition that roughly belong to the middle-income countries category, which is typically characterised by greater diversity in the incidence of corruption, as compared to uniformly high levels of corruption among low-income and uniformly low levels of corruption among high-income countries. Ultimately, there appears to be a degree of positive correlation between economic freedom and corruption. The more conclusive result is that, higher achievements in the state of freedom correspond to similarly greater degrees of success in controlling corrupt behaviour.

Online publication date: Thu, 29-Mar-2012

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