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The evolution of corruption and its current state – A case study on Romania

Author

Listed:
  • Ciprian ROTARU

    (The Bucharest University of Economic Studies, Romania)

  • Raluca GEORGESCU

    (The Bucharest University of Economic Studies, Romania)

  • Dumitru-Alexandru BODISLAV

    (The Bucharest University of Economic Studies, Romania)

Abstract

This paper represents an overview of the corruption phenomenon that can take different forms depending on the actors involved: favouritism, fraud, nepotism, protection tax, embezzlement, influence peddling, bribery and extortion. No corruption would occur without the participation of companies, banks and governments which feeds and facilitate corruption through their actions. Companies pay bribes, neglect or refuses to disclose payments creating an environment conducive to misappropriation. Companies also exploit the gaps in laws for the poor but resource-rich countries to avoid taxes and depriving them of much needed income. Banks feed corruption by offering loans secured by properties with low transparency, thereby enabling money estrangement without citizens knowing this. More than that, banks have shown over time that they are willing to accept huge volumes of money from corrupt governments, officials or businessmen looking to draw income from the legitimate economy of the country without paying taxes. The model developed in this research paper represents a study created for the perception of the Romanian population regarding its awareness on corruption and national core values.

Suggested Citation

  • Ciprian ROTARU & Raluca GEORGESCU & Dumitru-Alexandru BODISLAV, 2017. "The evolution of corruption and its current state – A case study on Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(610), S), pages 99-108, Spring.
    • Handle: RePEc:agr:journl:v:xxiv:y:2017:i:1(610):p:99-108
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    References listed on IDEAS

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