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Institutional Compliance by Firms in Transition Economies



This research revisits the effects of a country’s institutional framework on individual firms’ behavior, in particular focusing on their propensity to comply with legal rules in transition economies. The authors purport to explain the variation in compliance with legal rules and employ a rich data set on thousands of firms from dozens of transition countries to this end. They find that most of the variation emanates from country-wide differences in institutional quality, although some firm characteristics play a role as well. They also find indications that differences across countries are smoothed with income.

Suggested Citation

  • Jorge Guillen & Paola Vargas, 2010. "Institutional Compliance by Firms in Transition Economies," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 60(2), pages 138-150, May.
  • Handle: RePEc:fau:fauart:v:60:y:2010:i:2:p:138-150

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    References listed on IDEAS

    1. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
    2. repec:zbw:rwidps:0043 is not listed on IDEAS
    3. Augurzky, Boris & Bauer, Thomas K. & Schaffner, Sandra, 2006. "Copayments in the German Health System - Do They Work?," RWI Discussion Papers 43, RWI - Leibniz-Institut für Wirtschaftsforschung.
    4. Augurzky, Boris & Bauer, Thomas K. & Schaffner, Sandra, 2006. "Copayments in the German Health System: Does It Work?," IZA Discussion Papers 2290, Institute for the Study of Labor (IZA).
    5. O'Brien, Bernie, 1989. "The effect of patient charges on the utilisation of prescription medicines," Journal of Health Economics, Elsevier, vol. 8(1), pages 109-132, March.
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    More about this item


    firms; institutions; law compliance; country differences; transition economies;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law


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