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What Determines State Capture in Poland?

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  • Alwasiak, Stanislaw
  • Lewandowska-Kalina, Monika
  • Kalina, Lech
  • Kowalewski, Oskar
  • Mozdzen, Michal
  • Rybinski, Krzysztof

Abstract

In this paper we examine the determinants of ex-ante state capture analyzing all the legal acts that have been passed in the period 1990-2011 in Poland. We find that during this the majority of legal acts were passed with the aim to satisfy the interest of particular groups. Furthermore, the regression analysis shows that the likelihood of state capture increases during the period of economic growth and local elections. The likelihood of state capture, however, declines during presidential elections. The results we attribute to different interests of political parties in the period of local and presidential election. Finally, we find that the state capture increased over the years in Poland. Additionally, we show that the EU accession did not prevent state capture in Poland. In contrast, the financial crisis of 2007 resulted in a wake-up effect and the likelihood of state capture declined in Poland.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 47057.

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Date of creation: 28 Feb 2013
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Handle: RePEc:pra:mprapa:47057

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Keywords: law; corruption; state capture; public interest; transition country; Poland;

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  1. Igor Guardiancich, 2004. "Welfare State Retrenchment in Central and Eastern Europe: The Case of Pension Reforms in Poland and Slovenia," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 2(1), pages 41-64.
  2. Rogoff, Kenneth, 1990. "Equilibrium Political Budget Cycles," American Economic Review, American Economic Association, vol. 80(1), pages 21-36, March.
  3. Rajan, Raghuram G. & Zingales, Luigi, 2003. "The great reversals: the politics of financial development in the twentieth century," Journal of Financial Economics, Elsevier, vol. 69(1), pages 5-50, July.
  4. Jeffrey Sachs, 1994. "Poland's Jump to the Market Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691744, December.
  5. Frye, Timothy & Shleifer, Andrei, 1997. "The Invisible Hand and the Grabbing Hand," American Economic Review, American Economic Association, vol. 87(2), pages 354-58, May.
  6. Martimort, David, 1999. "The Life Cycle of Regulatory Agencies: Dynamic Capture and Transaction Costs," Review of Economic Studies, Wiley Blackwell, vol. 66(4), pages 929-47, October.
  7. Shleifer, Andrei & Vishny, Robert W, 1994. "Politicians and Firms," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 995-1025, November.
  8. Alberto Alesina & Roberto Perotti & José Tavares, 1998. "The Political Economy of Fiscal Adjustments," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(1), pages 197-266.
  9. Oskar Kowalewski & Krzysztof Rybinski, 2011. "The hidden transformation: the changing role of the state after the collapse of communism in Central and Eastern Europe," Oxford Review of Economic Policy, Oxford University Press, vol. 27(4), pages 634-657.
  10. Alberto Alesina, 2000. "The Political Economy of the Budget Surplus in the United States," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 3-19, Summer.
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