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Initial conditions and privatisation as causes of post-communist corruption

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  • Andrzej Cieślik
  • Łukasz Goczek

Abstract

This article investigates the economic determinants of corruption in post-communist countries. We conduct an empirical verification of two research hypotheses using EBRD and World Bank data on 27 post-communist economies over the 1996–2014 period. The first hypothesis suggests that corruption is rooted in the communist past, when these countries embraced communist institutions, social norms, as well as low-development structural factors broadly defined as initial conditions. The second hypothesis is that the flawed transition process led corruption to increase because politics and business were never separated. The elites pushed measures that preserved their status while obstructing reform policies that might endanger their interests. Our empirical results demonstrate that both hypotheses are valid to a limited extent, while revealing a more complex view of the reforms and initial conditions. Corruption seems to be related to the natural resource curse, to the lack of small-scale privatisation and to a long history of underdevelopment that could have preceded communism.

Suggested Citation

  • Andrzej Cieślik & Łukasz Goczek, 2018. "Initial conditions and privatisation as causes of post-communist corruption," Post-Communist Economies, Taylor & Francis Journals, vol. 30(1), pages 36-55, January.
  • Handle: RePEc:taf:pocoec:v:30:y:2018:i:1:p:36-55
    DOI: 10.1080/14631377.2017.1361693
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    Cited by:

    1. Andrzej Cieślik & Łukasz Goczek, 2022. "Who suffers and how much from corruption? Evidence from firm-level data," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(3), pages 451-473, September.
    2. Laureti, Lucio & Costantiello, Alberto & Leogrande, Angelo, 2022. "The fight against corruption at global level. A metric approach," MPRA Paper 115837, University Library of Munich, Germany.

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