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Regional Differences in Perceived Corruption among Ukrainian Firms

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  • Denisova-Schmidt, Elena
  • Huber, Martin

Abstract

This paper investigates regional differences in the perception of corruption and informal practices among Ukrainian firms. Using two different data sets from Ukraine we show that perceived corruption differs significantly across regions, even when taking into account the size, industry, workforce composition, and other characteristics of the firms based on propensity score matching. In particular, perceived corruption is highest in the eastern areas and lowest in the western region, which points to distinct business practices that may be rooted in the different political, cultural, and historical development of Ukrainian regions.

Suggested Citation

  • Denisova-Schmidt, Elena & Huber, Martin, 2014. "Regional Differences in Perceived Corruption among Ukrainian Firms," Economics Working Paper Series 1407, University of St. Gallen, School of Economics and Political Science.
    • Handle: RePEc:usg:econwp:2014:07
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    File URL: http://ux-tauri.unisg.ch/RePEc/usg/econwp/EWP-1407.pdf
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    References listed on IDEAS

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    2. Amelie F. Constant & Martin Kahanec & Klaus F. Zimmermann, 2011. "The Russian-Ukrainian Political Divide," Eastern European Economics, Taylor & Francis Journals, vol. 49(6), pages 97-109, November.
    3. Michael Lechner & Ruth Miquel & Conny Wunsch, 2011. "Long‐Run Effects Of Public Sector Sponsored Training In West Germany," Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 742-784, August.
    4. La Porta, Rafael & Lopez-De-Silanes, Florencio & Shleifer, Andrei, 1999. "Corporate Ownership Around the World," Scholarly Articles 30747162, Harvard University Department of Economics.
    5. Sascha O. Becker & Katrin Boeckh & Christa Hainz & Ludger Woessmann, 2016. "The Empire Is Dead, Long Live the Empire! Long‐Run Persistence of Trust and Corruption in the Bureaucracy," Economic Journal, Royal Economic Society, vol. 126(590), pages 40-74, February.
    6. Huber, Martin & Lechner, Michael & Wunsch, Conny, 2013. "The performance of estimators based on the propensity score," Journal of Econometrics, Elsevier, vol. 175(1), pages 1-21.
    7. Peter Rodgers & Colin C. Williams & John Round, 2008. "Workplace crime and the informal economy in Ukraine," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 35(9), pages 666-678, August.
    8. Martin Huber & Michael Lechner & Andreas Steinmayr, 2015. "Radius matching on the propensity score with bias adjustment: tuning parameters and finite sample behaviour," Empirical Economics, Springer, vol. 49(1), pages 1-31, August.
    9. Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer, 1999. "Corporate Ownership Around the World," Journal of Finance, American Finance Association, vol. 54(2), pages 471-517, April.
    10. Fisman, Raymond & Svensson, Jakob, 2007. "Are corruption and taxation really harmful to growth? Firm level evidence," Journal of Development Economics, Elsevier, vol. 83(1), pages 63-75, May.
    11. Roberto Martin N. Galang, 2012. "Victim or Victimizer: Firm Responses to Government Corruption," Journal of Management Studies, Wiley Blackwell, vol. 49(2), pages 429-462, March.
    12. O. Leipnik & S. Kyrychenko, 2013. "The public utilities war and corruption in Ukraine," Post-Communist Economies, Taylor & Francis Journals, vol. 25(2), pages 159-174, June.
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    Cited by:

    1. Huber, Martin & Tyahlo, Svitlana, 2016. "How war affects political attitudes: evidence from eastern Ukraine," FSES Working Papers 472, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
    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.
    3. Denisova-Schmidt, Elena & Huber, Martin & Prytula, Yaroslav, 2015. "An experimental evaluation of an anti-corruption intervention among Ukrainian university students," FSES Working Papers 462, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
    4. Teichmann, Fabian & Falker, Marie-Christin & Sergi, Bruno S., 2020. "Extractive industries, corruption and potential solutions. The case of Ukraine," Resources Policy, Elsevier, vol. 69(C).

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    More about this item

    Keywords

    Corruption; Informal Practices; Regionalism; Ukraine;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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