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Perceptions of Corruption and Informality Among Businesspeople

Author

Listed:
  • Frey Barbara

    (PhD student, Faculty of Business, Economics and Management, Information Systems, University of Regensburg, Universitätsstraße 31, 93053 Regensburg, Germany)

  • Škrinjarić Bruno

    (PhD Research associate, Institute of Economics, Zagreb Croatia)

  • Budak Jelena

    (PhD, Senior research fellow in permanent position, Institute of Economics, Zagreb, Croatia)

Abstract

This research assesses perception of corruption in business-to-business and business-to-government interactions by using empirical evidence from Serbia. Based on the survey data, it captures the perceptions of corruption of business owners and managers of small and medium enterprises (SMEs) and examines their attitudes towards informal, licit, or illicit, business practices. The typology of SMEs according to their opinion on corruption- and institutional-related obstacles resulted in three different clusters, based on several variables. Moreover, empirical findings show that business is not much hindered by regulations but with a common lack of trust in institutions, crime, and perceived corruption. SMEs are perceived as particularly affected by a negative corrupt environment where large companies are seen as the source of corruption. The findings allow for the creation of lawful and incorruptible business policies, as well as ideas on preventing the common practice of illicit trading with job positions in the public sector.

Suggested Citation

  • Frey Barbara & Škrinjarić Bruno & Budak Jelena, 2022. "Perceptions of Corruption and Informality Among Businesspeople," South East European Journal of Economics and Business, Sciendo, vol. 17(2), pages 49-66, December.
    • Handle: RePEc:vrs:seejeb:v:17:y:2022:i:2:p:49-66:n:13
    DOI: 10.2478/jeb-2022-0014
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    References listed on IDEAS

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    Cited by:

    1. Efendic Adnan, 2022. "Editorial," South East European Journal of Economics and Business, Sciendo, vol. 17(2), pages 1-1, December.

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    More about this item

    Keywords

    corruption; informality; SMEs; B2B; B2G; cluster analysis; Serbia;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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