IDEAS home Printed from https://ideas.repec.org/a/mes/eaeuec/v55y2017i4p324-341.html
   My bibliography  Save this article

Trust and Perceived Corruption Among Ukrainian Firms

Author

Listed:
  • Elena Denisova-Schmidt
  • Yaroslav Prytula

Abstract

This article investigates how firms build trust with one another and with third parties in endemically corrupt environments where trust is usually very low and significantly affected by corruption. Based on a representative survey of firms operating in Ukraine, an endemically corrupt environment, the authors explore some mechanisms for building trust. The study outcomes suggest positive correlations between the perception of corruption and trust among firms (especially through such mechanisms as using patronage at all levels, inviting business partners to restaurants or parties, and introducing business partners to family and friends), while other mechanisms (such as showing expertise in the field, developing communication competencies, and using notaries and lawyers to secure contracts) demonstrate no significant links. Moreover, the results demonstrate that foreign ownership might influence corruption and trust among firms. From a policy perspective, the authors recommend more work on understanding why firms engage in specific corrupt practices and less on destroying their informal relationships. International exposure might be an additional tool for mitigating corruption in Ukraine.

Suggested Citation

  • Elena Denisova-Schmidt & Yaroslav Prytula, 2017. "Trust and Perceived Corruption Among Ukrainian Firms," Eastern European Economics, Taylor & Francis Journals, vol. 55(4), pages 324-341, July.
    • Handle: RePEc:mes:eaeuec:v:55:y:2017:i:4:p:324-341
    DOI: 10.1080/00128775.2017.1312455
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00128775.2017.1312455
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00128775.2017.1312455?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ronald Wintrobe, 2001. "Tax Evasion and Trust," University of Western Ontario, Departmental Research Report Series 200111, University of Western Ontario, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thomas Herzfeld & Iryna Kulyk & Axel Wolz, 2018. "Is Agribusiness Different? Firm-Level Evidence of Perceived Corruption in Post-Soviet Countries," Eastern European Economics, Taylor & Francis Journals, vol. 56(6), pages 504-521, November.
    2. Denisova-Schmidt, Elena & Prytula, Yaroslav, 2018. "Business corruption in Ukraine: A way to get things done?," Business Horizons, Elsevier, vol. 61(6), pages 867-879.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Benno Torgler, 2003. "Tax Morale in Transition Countries," Post-Communist Economies, Taylor & Francis Journals, vol. 15(3), pages 357-381.
    2. D’Hernoncourt, Johanna & Méon, Pierre-Guillaume, 2012. "The not so dark side of trust: Does trust increase the size of the shadow economy?," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 97-121.
    3. Libman Alexander & Feld Lars P., 2013. "Strategic Tax Collection and Fiscal Decentralization: The Case of Russia," German Economic Review, De Gruyter, vol. 14(4), pages 449-482, December.
    4. Klarita Gërxhani, 2004. "The Informal Sector in Developed and Less Developed Countries: A Literature Survey," Public Choice, Springer, vol. 120(3_4), pages 267-300, September.
    5. Çule, Monika & Fulton, Murray, 2009. "Business culture and tax evasion: Why corruption and the unofficial economy can persist," Journal of Economic Behavior & Organization, Elsevier, vol. 72(3), pages 811-822, December.
    6. Libman, Alexander, 2009. "Essays on Asymmetric Federalism," MPRA Paper 21591, University Library of Munich, Germany.
    7. Distinguin, Isabelle & Rugemintwari, Clovis & Tacneng, Ruth, 2016. "Can Informal Firms Hurt Registered SMEs’ Access to Credit?," World Development, Elsevier, vol. 84(C), pages 18-40.
    8. Benno Torgler, 2004. "Tax Morale, Trust and Corruption: Empirical Evidence from Transition Countries," CREMA Working Paper Series 2004-05, Center for Research in Economics, Management and the Arts (CREMA).
    9. Corina Maria ENE & Carmen Marilena UZLAU & Mariana BALAN, 2011. "Tax Evasion - Between Legal And Illegal Mechanisms Of The Underground Economy," Internal Auditing and Risk Management, Athenaeum University of Bucharest, vol. 24(4), pages 12-20, december.
    10. Aziz N. Berdiev & James W. Saunoris, 2019. "On the Relationship Between Income Inequality and the Shadow Economy," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(2), pages 224-249, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:eaeuec:v:55:y:2017:i:4:p:324-341. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MEEE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.