48 2018, XXI, 4
Ekonomie
DOI: 10.15240/ ul/001/2018-4-004
In oduc ion
Business en i onmen is an impo an
de e minan o na ional compe i i eness and
sus ainable long- e m economic g ow h.
Business en i onmen quali y de e mines he
isk as well as e u ns om in es men and
he e o e a ec s in es men decisions.
The business en i onmen is la gely, i no
o ally, beyond he con ol o he i ms and hei
managemen . I esul s om exis ing poli ical,
legal and egula o y amewo k; mac oeconomic
policies; ins i u ional in as uc u e; social and
cul u al con ex wi hin which ansac ions
ake place, he quali y o physical and social
in as uc u e and many o he ac o s. Empi ical
esea ch has shown ha co up ion ep esen s
a se ious obs acle o en ep eneu ship and
business (Kau mann & Wei, 2000; Meon &
Sekka , 2005). Hellman e al. (2000) conside
co up ion, in addi ion o go e nance quali y and
s a e cap u e, a ac o ha signi i can ly shapes
business en i onmen in ansi ion coun ies.
Go e nmen has a i al ole in c ea ing and
ensu ing he s able and heal hy socio-economic
en i onmen o businesses. By ensu ing lowe
ansac ion cos s on indi iduals and i ms, well-
egula ed business en i onmen allows hem o
ope a e mo e e i cien ly. Acco ding o Gu ie
(2004) co up ion and poo ins i u ions a e key
de e minan s o exis ing poo egula ion and
misgo e nance. B een and Gillande s (2012)
conside a coun y’s exis ing s ock o egula ion
as a p oduc o i s ecen his o y o ins i u ional
quali y and co up ion. Main i ndings o hei
esea ch show ha he le el o co up ion is
he mos impo an ac o ha de e mines he
quali y o he business en i onmen , umping
he quali y o ins i u ions and a ange o o he
indica o s. The e o e, de elopmen and
implemen a ion o app op ia e s a egies,
ocused on con inuous imp o emen o
business en i onmen a e o g ea impo ance.
Al hough some au ho s jus i y co up ion on
he g ound ha i helps i ms o deal wi h obs acles
caused by ine i cien public adminis a ion
(D ehe & Gassebne , 2013; Le , 1964), co up
business en i onmen o ces i ms o alloca e
signi i can pa o hei human, i nancial and
o he esou ces o co up p ac ices ins ead o
ocusing on inno a ion and de elopmen . La ge
companies a e in be e posi ion because hey
ha e esou ces and capaci ies o p o ec hei
business in e es s and cope wi h co up ion,
while small and medium-sized en e p ises a e
mo e s ongly a ec ed by co up ion. The e
is also e idence ha he ex en o co up ion
a ies in di e en egions o he same coun y
(Linha o á & Volejníko á, 2015). This s udy
ends o con ibu e o he li e a u e on he
causes o co up ion. Pa icula ly, we empi ically
es he ele ance o a ious de e minan s o
co up ion in he business en i onmen , on he
example o a single ansi ion economy. Se bia
is a coun y whe e co up ion is pe cei ed as
a majo impedimen o in es ing and doing
business e i cien ly (S ošić, Nikolić, & Đukić,
2011). In ou analysis, we use da a on he
pe cep ions o co up ion h oughou Se bian
business en i onmen , as well as he eal cases
o co up ion, in he o m o in o mal paymen s
o gi s o a ious pu poses. We in es iga e o
wha ex en co up ion ep esen s an obs acle
o business ansac ions and o e po en ial
explana ions o he de e minan s o such
a i udes.
The pape is o ganized as ollows. Sec ion 1
p esen s a b ie o e iew o he main i ndings
o he li e a u e on co up ion, i s de e minan s
and he impac on he business en i onmen .
Sec ion 2 desc ibes he da a sou ces and explains
he p oposed me hodological p ocedu es. In
sec ions 3 and 4, he esul s o empi ical es s a e
p esen ed and discussed. The pape ends wi h
a summa y o he main i ndings.
PERCEIVED CORRUPTION IN BUSINESS
ENVIRONMENT: EXPLORING
THE UNDERLYING CAUSES
Ma ija Džunić, Na aša Golubo ić
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49
4, XXI, 2018
Economics
1. Li e a u e Re iew
Co up ion is a complex social phenomenon ha
has a long his o y. Fo ms, causes, mechanisms
and conseqences o co up ion ep esen
a popula subjec o scien i i c inqui ies (Mau o,
1995; Paldam, 2002; Rose-Acke man, 1999;
Shlei e & Vishny, 1993). Ye , despi e nume ous
poli ical, legal, economic and sociological
s udies, he e is no globally accep ed de i ni ion
o co up ion. Co up ion is mos commonly
de i ned as he misuse o he abuse o powe
o pe sonal gain and exis s in bo h public and
p i a e sec o s.
Co up ion is p edominan ly associa ed wi h
he public sec o . Mau o (1995) deals only wi h
go e nmen co up ion. Shlei e and Vishny
(1993) ocus hei a en ion on co up ion in
he public sec o , whe e co up ion is a “sale
by go e nmen o i cial o go e nmen p ope y
o pe sonal gain” (p. 599). Pe haps he mos
comp ehensi e de i ni ion o co up ion is gi en
by Tanzi (1995), who associa es co up ion
wi h he delibe a e iola ion o impa iali y in
decision making p ocess, o he pu pose o
app op ia ing bene i s o onesel o o ela ed
indi iduals.
Rega dless o i s o ms, i is widely belie ed
ha co up ion ep esen s a conside able
impedimen o sus ainable g ow h and
de elopmen (Mau o, 1995; Tanzi, 1998).
High le els o co up ion a ec in es men
decisions and economic g ow h (Mau o, 1997).
Go e nance and co up ion issues, acco ding
o Kau man (2005), ep esen key cons ain s
o in es men and business. Business
en i onmen ha is conduci e o g ow h has
many dimensions, ela ed o he quali y o
ins i u ions, go e nmen policy, egula o y
amewo k e c. (UNODC, 2013). Besides
poli ical and economic s abili y, a sound
business en i onmen o a g ea deal depends
on he con ol o co up ion. Pe cep ions abou
business en i onmen a e a undamen al
ac o ha shapes decisions o i ms. I i ms
pe cei e business en i onmen as a ou able,
hey will be mo e inclined o in es . Co up ion
ep esen s a kind o ax on economic ac i i y,
which aises ansac ion cos s (Shlei e &
Vishny, 1993). Th ough ising unce ain y and
educed p o i abili y o en e p ises, co up ion
educes he willingness o en e p ises o
in es . I will in u n educe he a ac i eness
o en ep eneu ship; en ep eneu ial alen will
be di e ed o less p oduc i e ac i i ies, wi h
he nega i e impac on he inno a ion and
hus economic g ow h (Ha is & Me we, 2012,
p. 171). The e is also ou pu loss due o he
misalloca ion o esou ces (Shlei e & Vishny,
1993), dis o ions o incen i es, s eng hening
o he in o mal economy, changing s uc u e
o in es men and go e nmen spending.
Co up ion nega i ely a ec s coun y’s capaci y
o a ac o eign di ec in es men , which
is a majo ehicle o echnology ans e
(Abed & Da odi, 2002; Sma zynska & Wei,
2000). Indices o co up ion send ou signals
o po en ial in es o s, p o iding in o ma ion
necessa y o he assessmen o a coun y
isk and he cos o doing business, and o
he decision whe e o in es . Howe e , some
au ho s conside co up ion as bene i cial
because i helps o o e come he ine i ciency
o he go e nmen egula ions and a oid
bu eauc a ic obs acles (Le , 1964). Acco ding
o Ali and Isse (2003), b ibe y is a subs i u e o
highe wages, meaning ha i sa es money o
he go e nmen .
In he poli ical sphe e, co up ion causes
he dec ease o o e s’ con i dence in elec ed
ep esen a i es, unde mines he ule o law,
and unde mines he epu a ion o go e nmen
and o he ins i u ions. Co up ion a ec s he
c edibili y o poli ical ins i u ions in on o
ci izens and he es o he wo ld. Acco ding o
Hodgson and Jiang (2007, p. 1057) co up ion
educes le els o us in dealing wi h bo h
business and he s a e. I e odes con i dence in
public ins i u ions, diminishes s a e’s abili y o
p o ide public goods and se ices and c ea e
conduci e en i onmen o p i a e sec o
de elopmen .
Fu he mo e, co up ion a ec s o he
impo an de e minan s o business
en i onmen , such as social capi al (Pu nam,
1993; F i zen, Se i zlew, & S endsen, 2014).
Reliance on in o mal con ac s and amily,
iendship, e hnic and o he ies caused by
co up ion leads o he loss o bene i s o
wide coope a ion and compe i ion (G ae &
S endsen, 2013). I unde mines he e i cacy
o he o mal ules ha a e e y impo an o
he e i cien ma ke economy. S ong in o mal
ne wo ks wi h bonding social ies and lack o
e i cien o mal ins i u ions c ea e e ile g ound
o u he expansion o co up ion (Lipse &
Lenz, 2000; Ha is, 2007). In he long un,
co up ion causes he inc ease o inequali y and
po e y, c ea ing a gene al clima e o insecu i y,
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50 2018, XXI, 4
Ekonomie
lack o us in ins i u ions and he gene al
dissa is ac ion o all social s a ums (Ro hs ein
& Uslane , 2005).
In ansi ion coun ies, he collapse o
he exis ing ins i u ions o cen ally-planned
economy and slow eme gence o new
ins i u ions compa ible wi h ma ke economy
has es ablished ins i u ional acuum and e ile
g ound o public sec o co up ion. Ins i u ional
weakness, such as poo ly de i ned p ope y
igh s, weak accoun abili y o public o i cials and
limi ed poli ical compe i ion, has had a p o ound
impac on he suscep ibili y o ansi ion
coun ies o co up ion. A he beginning o
ansi ion hese coun ies we e ocused on
he p oblem o economic ans o ma ion and
p i a iza ion. Re o ms o he s a e, public
adminis a ion and o he judicia y we e la gely
neglec ed (Acke man, 1992, p. 46). These
de elopmen s a ec ed he pace o poli ical
and economic e o ms and c ea ed a unique
ansi ion pa h o e e y coun y. Coun ies
whe e ansi ion pa h led o concen a ion o
economic powe in a se ing o weak ins i u ions
became especially ulne able o co up ion.
The egion o he Wes e n Balkans is
pe cei ed as a egion o high co up ion.
Co up ion is pe cei ed as a majo obs acle o
in es men and doing business in his egion
(EUROCHAMBRES, 2009). This is con i med
by he esul s o se e al s udies (S ošić, Nikolić,
& Đukić, 2011; Dža i ć e al., 2011; Budak & Rajh,
2011). Acco ding o business ep esen a i es in
Se bia, co up ion is he i h mos signi i can
obs acle o doing business, igh a e ax a es,
ine i cien go e nmen bu eauc acy, poli ical
ins abili y and access o i nancing (WEF, 2016).
Uni ed Na ions O i ce on D ugs and C ime
s udy abou he impac o co up ion on p i a e
en e p ises in Se bia e eals ha co up ion
is a g ea hind ance o p i a e en e p ise and
has a nega i e e ec upon p i a e in es men
(UNDOC, 2013).
The ob ious nega i e impac o co up ion
on economic and social ou comes implica es
ha explo ing possible de e minan s o
co up ion is e y impo an . Howe e , a se ious
limi a ion o s udies ha explo e causes
o co up ion ela es o he p oblems in i s
measu emen . Ac ual co up ion inciden s a e
e y ha d o de ec , since agen s end o hide
hei pa icipa ion in co up p ac ices. Fo his
eason, di ec measu es o co up ion a e a ely
a ailable o esea ch. The e o e, widely used
measu es o co up ion a e es ima es based
on pe cep ions o he equency and le el o
co up ion, cap u ed by su eys. Al hough
pe cep ions could possibly de ia e om
ac ual co up ion inciden s (T eisman, 2007),
pe cep ions based indica o s a e conside ed
a eliable indica o o co up ion. In ha sense,
when explo ing co up ion de e minan s,
empi ical s udies mainly ely on da a abou
pe cei ed co up ion.
The e a e many possible causes o
co up ion sugges ed by he li e a u e.
Economic de e minan s o co up ion mos
o en include coun y’s economic weal h (Hall
& Jones, 1999), income inequali y (Paldam,
2002), economic eedom (T eisman, 2000),
ade openness (Pe sson e al., 2003), in l a ion
and mac o-economic pe o mance (Melga e
al., 2010). S udies ela ed o poli ical causes
o co up ion ha e ocused on he impac o
poli ical ins abili y (Lede man e al., 2005),
poli ical libe ies (T eisman, 2000), elec o al
sys ems (Pe sson e al., 2003), e c.
Go e nmen is ci ed as he impo an
sou ce o co up ion because ex ensi e s a e
egula ion o he economy c ea es possibili ies
o he ex ac ion o en s. Empi ical esea ch
abou o igins o co up ion indica es ha poo ly
unc ioning ins i u ions and policies unde mine
ee ade and compe i ion, hus leading o
co up ion. Based on he analysis o ins i u ional
quali y in 18 OECD coun ies D ehe e al. (2009)
i nd ha inc ease in ins i u ional quali y educes
he le el o co up ion. Ex ensi e egula ion o
ma ke en y, in he o m o p ocedu es, cos s
and ime o s a a new business, is consis en
wi h highe le els o co up ion (Djanko e
al., 2002). A highly di e si i ed ade a i may
encou age public o i cials o ex ac b ibes om
impo e s (Ga i, 1999).
The e a e wo basic sou ces o co up ion
ela ed o go e nmen ac i i y. The i s
conce ns he way go e nmen pe o ms i s
ac i i ies, such as ax collec ion, cus oms and
licensing. Powe s o he go e nmen o i cials
a e o en accompanied by disc e ion, non-
anspa en o ambiguous p ocedu es, c ea ing
a ou able condi ions o ex ac ing b ibes.
The e o e, he ule o law and he quali y o
bu eauc acy a e impo an de e minan s o
co up ion (Rauch & E ans, 1997; Ali & Isse,
2003; B une i & Wede , 2004). Co up ion ends
o be lowe in he en i onmen cha ac e ized by
s ong and e ec i e judicial sys em, con ac
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51
4, XXI, 2018
Economics
en o ceabili y and p o essional bu eauc acy.
The second includes poli ical ac o s in ol ed
in poli ical decision making, such as legisla ion,
p i a iza ion and con ac ing, whose ac i i ies
may cause a subs an ial dys unc ion o he
legisla i e, execu i e and judicial b anches o
powe . Ac i i ies o in e es g oups, which a e
o en illegal and non- anspa en , may in l uence
go e nmen policies, egula ions and laws, wi h
he pu pose o achie ing p i a e bene i s.
Ins i u ional and gene alized us s a e
also pe cei ed as ele an p edic o s o
co up ion (Ro hs ein & Uslane , 2005).
Co up en i onmen s a e cha ac e ized by
conside able de e io a ion o us in ins i u ions
and poli icians, as well as in business pa ne s.
2. Da a and Me hodology
Fo he pu pose o his s udy, da a om he i h
ound o Business En i onmen and En e p ise
Pe o mance Su ey – BEEPS V (EBRD,
2015) we e used. The BEEPS su ey has been
conduc ed as a join ini ia i e o he Eu opean
Bank o Recons uc ion and De elopmen and
he Wo ld Bank, since 1999, as a i m-le el
su ey based on in e iews wi h i m manage s,
wi h he aim o assessing he quali y o he
business en i onmen and main challenges o
he p i a e sec o de elopmen . The i h ound
o he su ey, implemen ed o e he pe iod
2012-2014, co e ed 15,883 en e p ises in 30
coun ies o Eas e n Eu ope and Cen al Asia.
The esea ch in his pape is based on da a om
he su ey implemen ed in Se bia. Rega ding
sampling implemen a ion, in each coun y wo
sampling ames ha e been used: he i s , an
o i cial ame o es ablishmen s supplied by
he o i cial sou ces in he coun y (Business
Regis e s Agency in he case o Se bia);
and he second, consis ing o en e p ises
in e iewed in p e ious ound o he su ey. In
pa icula , ou o he o al numbe o con ac ed
es ablishmen s in Se bia (836), he numbe o
non-eligible uni s was 73, 40 es ablishmen s
we e impossible o con ac , while 363 e used
o pa icipa e in he su ey. The numbe o
comple ed in e iews was 360, indica ing he
esponse a e o 0.43. The in e iews wi h
senio manage s we e conduc ed om Janua y
o Augus 2013. The da a used in his pape
exp ess hei a i udes abou ela ions be ween
business and go e nmen . The owne ship
s uc u e o he su eyed en e p ises is as
ollows: 317 en e p ises a e 100% owned by
domes ic p i a e capi al, 25 en e p ises a e o
100% p i a e o eign owne ship, 10 en e p ises
ha e a ce ain pe cen age o s a e capi al
( om 1 o 93%), while he es (8 en e p ises)
epo combined owne ship. All ypes o
en e p ises (mic o, small, medium and la ge)
a e encompassed by he su ey.
In he a emp o explo e he unde lying
causes o co up ion pe cep ions, we es
whe he he pe cep ions o co up ion as an
obs acle o business ansac ions di e based
on dis inc i e ea u es o he i ms. Besides
c oss- abula ions and desc ip i e s a is ics,
a nonpa ame ic es o he analysis o a iance
was pe o med, as o de e mine whe he he e
a e s a is ically signi i can di e ences in he
pe cei ed sp ead o co up ion ac oss a numbe
o independen a iables ( egions, size o locali y,
indus y, size, and yea s o ope a ion). Since he
examined a iables consis o mo e ca ego ies,
wi h a clea o de ing and equally spaced
in e als be ween he alues, he me hod o
choice is he K uskal-Wallis one-way analysis-
o - a iance es , H (K uskal & Wallis, 1952;
1953). This is a non-pa ame ic e sion o he
one-way ANOVA and an ex ension o he Mann-
Whi ney U es , used when he assump ion o
no mali y is iola ed, as in he case o da a used
o his s udy. The da a in ou sample mee all
he assump ions ha unde pin he applica ion
o K uskal-Wallis H es . All he dependen
a iables a e measu ed on a Like scale wi h
5 o mo e poin s; independen a iables consis
o wo o mo e ca ego ical independen g oups;
obse a ions a e independen ; and, mos
impo an ly, dis ibu ions o sco es ( o each
g oup o independen a iable) ha e he same
shape ( a iabili y).
Addi ionally, by speci ying an o de ed
logis ic eg ession model, we explo e he
de e minan s o he a i udes on co up ion. We
es ima e he ela ions be ween he pe cep ions
o co up ion and se e al independen
a iables ( equencies o uno i cial paymen s
and gi s o di e en pu poses, pe cei ed
impac o in o mal paymen s on go e nmen
decisions, pe cep ions o he impo ance
o poli ical s abili y and cou s o business
ope a ions). As he dependen a iable in he
model is ca ego ical and o de ed (pe cep ions
o co up ion as an obs acle o doing
business, exp essed by 5-poin Like scale),
we es ima e an o de ed logis ic eg ession
model, also known as p opo ional odds model
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52 2018, XXI, 4
Ekonomie
(Ai chison & Sil ey, 1957; McKel ey & Za oina,
1975; Long & F eese, 2014).
Using he ologi model, we ob ain he
p obabili ies o obse ing each o he possible
ou comes i o dependan a iable (deg ees
o pe cei ed co up ion) wi hin he ange o
he es ima ed cu -poin s. In o he wo ds, he
p obabili y o ou come i is calcula ed as he
p obabili y ha he alue o he linea unc ion
o he independen a iables (including he
e o e m uj) is wi hin he ange o es ima ed
cu -poin s (ki):
(1)
In his model, he ela ionship be ween
each pai o ou come g oups is he same and i
is desc ibed by one se o coe i cien s, so only
one equa ion is es ima ed. Two p ocedu es
a e pe o med o es ing he p opo ional odds
assump ion: a likelihood a io es (Wol e &
Gould, 1998) and B an es (B an , 1990).
Based on he model, we ob ain p edic ions
ega ding he e ec s ha imp o ing business
en i onmen can ha e on co up ion pe cep ions
o he exis ing and po en ial business ac o s.
3. Resul s
3.1 Da a O e iew and Desc ip i e
S a is ics
Th oughou ansi ion coun ies, i m manage s
epo ha op h ee obs acles, as pe cei ed
by each i m, a e compe i o s’ p ac ices in he
in o mal sec o , access o i nance and elec ici y
issues (EBRD, 2015a). Howe e , co up ion
s ill emains one o he bigges obs acles, e en
hough he su ey esul s indica e he e has
been a signi i can decline in he sha e o i ms
epo ing ha in o mal paymen o gi s we e
expec ed o eques ed om hem in di e en
in e ac ions wi h go e nmen o i cials. One
o he easons o his decline, as epo ed,
migh be he in oduc ion o elec onic i ling
and paymen sys ems, which educe he
possibili ies o o i cials o eques in o mal
paymen s. S ill, he e a e a numbe o i ms ha
epo signi i can sha e o hei annual sales o
he pu pose o “ge ing hings done”.
The op h ee business en i onmen
obs acles iden i i ed by i ms in Se bia a e poli ical
ins abili y, ax a es and access o i nance
(EBRD, 2015). These esul s a e de e mined
by he in ensi e poli ical de elopmen s in
he pe iod p io o su ey – p esiden ial and
pa liamen a y elec ions, ollowed by he change
o he uling pa y. The new go e nmen has
in oduced a i scal consolida ion e o m, which
caused a ise in he ax a es. Access o i nance
has become he bigges p oblem o Se bian
i ms, due o he lack o c edi unds and
inc eased in e es a es. Besides, co up ion
appea s o be an impo an obs acle in Se bia.
As o 6.11% o he o al numbe o su eyed
i ms co up ion ep esen s he bigges obs acle
o business ope a ions.
The scope o co up ion appea s e e y
ime a i m in e ac s wi h go e nmen o i cials
o se ice p o ide s. Howe e , he pe cep ions
o i ms abou co up ion ac i i ies end o
di e , depending on hei size, indus y, egion
o owne ship s uc u e. Small i ms in Se bia
complain he mos abou co up ion, while all
he complain s a ise om he i ms ha a e
100% owned by domes ic p i a e capi al. The
majo i y o i ms ha complain abou co up ion
a e ope a ing in Belg ade, he capi al o Se bia.
A de ailed s a is ics on i ms’ pe cep ions
o co up ion as an obs acle o hei cu en
business ope a ions is p esen ed in Tab. 1 ( he
esponses a e assigned sco es om 0 = No
obs acle o 4 = Ve y se e e obs acle). The da a
indica e ha co up ion is widesp ead in he
business en i onmen . Less han a hal o he
su eyed i ms do no expe ience any p oblems
wi h co up ion, while 6.11% pe cei e co up ion
as a e y se e e obs acle o hei business.
Fu he mo e, o e 40% o he esponden s
claim ha o al annual cos o hei ope a ions
would dec ease i co up ion was no longe an
obs acle (no enclosed in he able). The mean
alue o expec ed cos dec ease epo ed by
he i ms is 11.75%.
In o de o explo e whe he such a i udes
on co up ion s em om eal cases o co up
ac i i ies o me ely pe cep ions on he sp ead o
co up ion in hei en i onmen , he esponden s
ha e been asked o epo i any gi s o in o mal
paymen s had been expec ed o eques ed
om hem when mee ing ax o i cials, ob aining
an impo license o ob aining an ope a ing
license. The su ey da a indica e ha 5-6% o
any in e ac ions wi h he go e nmen au ho i ies
a e ollowed by eques ing o expec ed gi s o
in o mal paymen s om he i ms. Addi ionally,
3 ou o 29 i ms ha ha e a emp ed o secu e
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53
4, XXI, 2018
Economics
a go e nmen con ac decla ed ha a ce ain
pe cen age (2-8%) o he con ac alue “would
ypically be paid in in o mal paymen s o gi s
o secu e he con ac ”. Fi ms epo ha hey
pay ce ain pe cen ages o o al annual sales as
in o mal paymen s o gi s o public o i cials o
“ge hings done” wi h ega d o cus oms, axes,
licenses, egula ions, se ices e c. Abou 8% o
he su eyed i ms epo ha in hei business
en i onmen , an es ablishmen such as hei s
pays a ce ain pe cen age o o al annual sales
in in o mal paymen s o gi s o public o i cials.
The pe cep ions o he esponden s on how
common i is o i ms in hei line o business o
ha e o pay some i egula “addi ional paymen s
o gi s” o ge hings done wi h ega d o cus oms,
axes, licenses, egula ions, se ices e c. a e
p esen ed in Tab. 2 ( he esponses a e assigned
sco es om 1 = Ne e o 6 = Always). Only
a qua e o esponden s belie e ha i is ne e
common o i ms o pay addi ional paymen s
o gi s o such pu poses, while o 12% o he
su eyed i ms, i is qui e common o make such
paymen s. Beside pe cep ions on how common
i is o i ms o pay addi ional paymen s and gi s,
he esponden s ha e epo ed on he equency
o paymen s o di e en pu poses ( o deal wi h
cus oms, cou s and axes).
I is assumed ha he main eason o
i ms’ making uno i cial paymen s o gi s is
o hem o gain ad an ages in he d a ing o
laws, dec ees, egula ions, and o he binding
go e nmen decisions. The ollowing able
p esen s he ex en o wha p i a e paymen s/
gi s o o he bene i s o pa liamen a ians
and go e nmen , egional o local o i cials o
a ec hei o es o he con en o go e nmen
dec ees, had a di ec impac on business o he
su eyed i ms (Tab. 3).
No obs acle 42.50%
Mino obs acle 21.39%
Mode a e obs acle 15.28%
Majo obs acle 11.11%
Ve y se e e obs acle 6.11%
Don’ know / No answe 3.61%
To al 100%
Sou ce: BEEPS V (EBRD, 2015)
Tab. 1: To wha deg ee is co up ion an obs acle in business en i onmen
I is common o pay
addi ional paymen s
“ o ge hings done”
To deal wi h
cus oms/impo s
To deal wi h
cou s
To deal wi h axes
and ax collec ion
Ne e 25.28% 41.39% 42.50% 39.72%
Seldom 21.94% 15.83% 14.17% 17.22%
Some imes 24.17% 14.17% 14.17% 14.72%
F equen ly 8.33% 4.17% 5.56% 3.61%
Ve y equen ly 2.50% 1.11% 0.83% 1.11%
Always 0.83% 0.56% 0.56% 0.00%
Don’ know 16.94% 22.78% 22.22% 23.61%
To al 100% 100% 100% 100%
Sou ce: BEEPS V (EBRD, 2015)
Tab. 2: The equency o in o mal paymen s
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54 2018, XXI, 4
Ekonomie
Desc ip i e s a is ics o he a iables used
in he analysis ha ollows is p esen ed in
Tab. 4. Obse a ions wi h missing alues (Don’
know, Does no apply) ha e been omi ed p io
o he calcula ions.
3.2 K uskal-Wallis Equali y-o -
Popula ions Rank Tes
The nex s ep o he analysis is o es whe he
he pe cep ions o co up ion as an obs acle in
he business en i onmen in Se bia di e based
No impac Mino Mode a e Majo Decisi e N/A
To a ec pa liamen a y
o es 59.17% 7.50% 3.61% 1.39% 0.83% 27.50%
To a ec go e nmen
dec ees 59.72% 6.39% 3.61% 1.67% 0.83% 27.78%
To a ec local and
egional o i cials 55.83% 9.17% 4.72% 1.67% 1.11% 27.50%
Sou ce: BEEPS V (EBRD, 2015)
Va iable Obs. Mean S . de . Min Max
Co up ion as obs acle o business 202 1.148515 1.307355 0 4
F equency o paymen s – cus oms 202 1.792079 1.068004 1 6
F equency o paymen s – cou s 202 1.861386 1.115514 1 6
F equency o paymen s – axes 202 1.831683 1.022817 1 5
Impac o paymen s – pa liamen a ians 202 1.301980 0.714384 1 5
Impac o paymen s – go e nmen 202 1.297030 0.740372 1 5
Impac o paymen s – local/ eg. o i cials 202 1.396040 0.829544 1 5
Cou s as obs acle o business 202 0.861386 1.226001 0 4
Poli ical ins abili y as obs acle 202 1.752475 1.333875 0 4
Sou ce: BEEPS V (EBRD, 2015)
Dependen a iable Independen
a iable d χ2 (wi h ies) p- alue
Co up ion as obs acle Indus y 2 6.882 0.0320
Region 3 9.973 0.0188
Uno i cial paymen s – Cus oms Size o locali y 3 8.838 0.0315
Uno i cial paymen s – Cou s Region 3 9.729 0.0210
Impac o paymen s – pa liamen a ians Indus y 2 8.105 0.0174
Impac o paymen s – go e nmen dec ees Indus y 2 13.052 0.0015
Sou ce: au ho ’s calcula ions based on BEEPS V (EBRD, 2015)
Tab. 3: The impac o uno i cial paymen s
Tab. 4: Desc ip i e s a is ics
Tab. 5: K uskal-Wallis es
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55
4, XXI, 2018
Economics
on dis inc i e ea u es o he i ms ( i m size,
egion, indus y o he size o locali y whe e i ms
ope a e, numbe o yea s o ope a ion). The
da a in ou sample mee he assump ions ha
unde pin he use o K uskal-Wallis H es . The
esul s o he K uskal-Wallis H a e p esen ed in
Tab. 5 (only esul s a p < 0.05 signi i cance le el
a e displayed).
The K uskal-Wallis H es showed
ha he e was a s a is ically signi i can
di e ence in pe cei ing co up ion as an
obs acle o business ope a ions be ween he
manu ac u ing, e ail and o he se ices, as
well as be ween he ou egions o Se bia.
Also, equency o uno i cial paymen s/gi s ha
i ms would make in a gi en yea o deal wi h
cus oms di e signi i can ly be ween locali ies
o di e en sizes, while equency o uno i cial
gi s paid o deal wi h cou s a e signi i can ly
di e en be ween Se bian egions. The
esul s also indica e ha he e is a s a is ically
signi i can di e ence be ween i ms om
di e en indus ies ega ding he ex en o
which p i a e paymen s o pa liamen a ians
(paid o a ec hei o es) ha e a di ec impac
on hei business. Belonging o manu ac u ing,
e ail o o he se ices indus y is also a alid
p edic o o he ex en ha p i a e paymen s o
go e nmen o i cials (paid o a ec he con en
o go e nmen dec ees) ha e a di ec impac on
i ms’ business.
The esul s o he pe o med es p o e ha ,
depending on he indus y hey belong o, egion
hey ope a e in, o size o hei ci y/ own, i ms
ha e di e en pe cep ions o how co up ion, in
he o m o uno i cial paymen s o gi s o public
o i cials, a ec s hei business ope a ions. The
ollowing analysis is aimed a explo ing he
causes ha de e mine such pe cep ions.
3.3 Es ima ion o he Pe cei ed
Co up ion De e minan s
The su ey da a on co up ion in Se bian
business en i onmen indica e a signi i can
p e alence o co up ion, as pe cei ed by
economic ac o s. In he a emp o explo e he
unde lying causes o co up ion pe cep ions,
we es whe he he a i udes on co up ion
a e de e mined by eal cases o co up ion
o pe cep ions o he impac ha in o mal
paymen s may ha e on he business
ope a ions. Speci ying he o de ed logis ic
eg ession model, we es he explana o y
powe o se e al po en ial de e minan s o
a i udes on co up ion. The esponse a iable
in he model is de i ned as he deg ee o which
co up ion p esen s an obs acle o business
ope a ions o esponden s, measu ed by
5 poin Like scale. The explana o y a iables
used in he model include: he equencies
o uno i cial paymen s o gi s o di e en
pu poses (dealing wi h cus oms, cou s o
O de ed logis ic eg ession Numbe o obs = 202
LR chi2(5) = 50.63
P ob > chi2 = 0.0000
Pseudo R2 = 0.0893
Log likelihood = -258.2548
Co up ion as obs acle Coe . S d. E . Z P>|z| [95% Con . In e al]
Uno i cial paymen s-cus oms .3581645 .1489654 2.40 0.016 .0661977 .6501313
Uno i cial paymen s- axes .4267126 .1554440 2.75 0.006 .1220479 .7313772
Impac -local/ egional o i cials .3267984 .1629264 2.01 0.045 .0074685 .6461284
Cou s as obs acle .2146813 .1148418 1.87 0.062 -.0104044 .439767
Poli ical ins abili y as obs acle .1670583 .1030101 1.62 0.105 -.0348378 .3689545
/cu 1 2.113232 .3855439 (Ancilla y pa ame e s)
/cu 2 3.030764 .4147334
/cu 3 4.192927 .4714150
/cu 4 5.335898 .5401861
Sou ce: au ho ’s calcula ions based on BEEPS V (EBRD, 2015)
Tab. 6: Reg ession esul s o de e minan s o pe cei ed co up ion
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56 2018, XXI, 4
Ekonomie
axes), he impac ha uno i cial paymen s o
public o i cials (pa liamen a ians, go e nmen
o i cials, local and egional o i cials) ha e on
he business ope a ions o he esponden s, as
well as a i udes o he esponden s ela ed o
he quali y o he judicial sys em and poli ical
s abili y.
The empi ical es ima es o he ologi model
a e p esen ed in Tab. 6.
The model summa y indica es he speci i cs
o he i ed model. The LR Chi-Squa e o
50.63 wi h a p- alue o 0.0000 implies ha he
model as a whole is s a is ically signi i can ,
as compa ed o he null model wi h no
p edic o s. I con i ms ha leas one o he
p edic o s’ eg ession coe i cien is no equal
o ze o. Deg ees o eedom o he Chi-Squa e
dis ibu ion used o es he LR Chi-Squa e
s a is ic a e de i ned by he numbe o p edic o s
in he model. The alue o pseudo-R-squa ed is
subjec o a a ie y o in e p e a ions; howe e
i does no indica e he p opo ion o a iance
o he esponse a iable explained by he
p edic o s, as he R-squa e ound in OLS
eg ession. Ancilla y pa ame e s (cu poin s)
shown in he eg ession ou pu a e used o
di e en ia e adjacen le els o he dependan
a iable, indica ing he cu s in he con inuous
la en a iable. Since ou esponse a iable has
5 le els, he numbe o cu poin s ( h esholds)
is 4. Fo example, cu 1 di e en ia es he lowes
le el o he esponse a iable (co up ion is no
obs acle o business ope a ions) om all he
highe le els o his a iable, gi en ha alues
o all p edic o s is ze o. In ou case, all alues
o la en a iable unde 2.11 would imply ha
co up ion is no obs acle o business, gi en ha
i ms ne e make in o mal paymen s o gi s o
deal wi h cus oms o axes; ha hese kinds o
paymen s ha e no impac on i ms’ ope a ions,
and ha cou s and poli ical ins abili y a e no
pe cei ed as obs acles o business.
In ou model, business ac o s ha a e
equen ly exposed o he unde akings o
paying uno i cial paymen s o gi s in o de
o deal wi h cus oms and axes end o
app ehend co up ion as a se e e obs acle
o hei business ope a ions. Acco ding o he
alues o he o de ed log-odds eg ession
coe i cien s, o a one uni inc ease in hese
wo p edic o s he pe cep ions o co up ion
a e expec ed o change in he o de ed log-
odds scale by 0.36 and 0.43 espec i ely, o he
a iables held cons an . Fo example, a one
uni inc ease in equency o in o mal paymen s
aimed a “ge ing hings done” in dealing wi h
he cus oms would esul in 0.36 uni inc ease
in he o de ed log-odds o esponse a iable
o be in a highe ca ego y (highe deg ee o
wha co up ion is pe cei ed as an obs acle o
business ope a ions), while o he a iables in
he model a e held cons an .
Simila o his, esponden s whose
ope a ions ha e been subjec o decisi e impac
o uno i cial paymen s, gi s o o he bene i s o
local o egional go e nmen o i cials, end o
pe cei e co up ion as ha m ul o hei business.
The o de ed log-odds es ima e o a one uni
inc ease in his p edic o on he expec ed le el
o he dependen a iable is 0.33, gi en he
o he a iables a e held cons an in he model.
On he o he hand, pe cep ions o esponden s
ela ed o he judicial e i ciency o poli ical
s abili y as de e minan s o business ope a ions
do no ha e s a is ical signi i cance (alpha le el
se a 0.05) in explaining co up ion pe cep ions.
4. Discussion and In e p e a ion
o Resea ch Resul s
I is clea om ou esul s ha i ms ha e
di e en pe cep ions o how co up ion, in he
o m o uno i cial paymen s o gi s o public
o i cials, a ec s hei business ope a ions,
depending on he indus y hey belong o,
egion hey ope a e in, o size o hei locali y
(see pa 3.3). The empi ical analysis indica es
ha he e a e signi i can di e ences in
pe cei ing co up ion as an obs acle o business
ope a ions be ween he manu ac u ing, e ail
and o he se ices, as well as be ween he
egions o he analysed coun y. Pe cep ions
on equency o uno i cial paymen s ha i ms
make o deal wi h cus oms di e signi i can ly
be ween i ms om locali ies o di e en sizes,
while pe cep ions on equency o uno i cial
paymen s o deal wi h cou s a e signi i can ly
di e en be ween egions. These i ndings
a e in line wi h he esul s o ecen empi ical
analysis o he business consequences o
local b ibe y en i onmen s (Hanoushek &
Kochano a, 2016), indica ing ha bu eauc a ic
co up ion is a local phenomenon, ha depends
no only on coun y, bu also indus y, i m and
ma ke size. Fu he mo e, such i ndings imply
he impo ance o iden i ying he po en ial
de e minan s o a i udes on co up ion.
The esul s o he o de ed logis ic eg ession
models a e mos commonly in e p e ed in
EM_4_2018.indd 56EM_4_2018.indd 56 28.11.2018 13:12:5028.11.2018 13:12:50
63
4, XXI, 2018
Economics
om Ten Yea s o C oss-Na ional Empi ical
Resea ch? Annual Re iew o Poli ical Science,
10(1), 211-244. h p s://doi.o g/10.1146/annu e .
polisci.10.081205.095418.
Van Duyne, P., & S occo, E. (2012).
Co up ion Policy in Se bia – om black box
o anspa en policy making. Ois e wijk: Wol
Legal Publishe s.
Wol e, R., & Gould, W. (1998). An
app oxima e likelihood- a io es o o dinal
esponse models. S a a Technical Bulle in,
7(42).
UNODC. (2013). Co up ion and C ime in
Se bia: The Impac o B ibe y and O he C ime
on P i a e En e p ise. Vienna: Uni ed Na ions
O i ce on D ugs and C ime.
Wo ld Economic Fo um. (2016). Global
Compe i i eness Repo . Gene a: Wo ld
Economic Fo um.
p o . d Ma ija Džunić, Ph.D.
Uni e si y o Niš
Facul y o Economics
Se bia
[email p o ec ed]
p o . d Na aša Golubo ić, Ph.D.
Uni e si y o Niš
Facul y o Economics
Se bia
[email p o ec ed]
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64 2018, XXI, 4
Ekonomie
Abs ac
PERCEIVED CORRUPTION IN BUSINESS ENVIRONMENT: EXPLORING THE
UNDERLYING CAUSES
Ma ija Džunić, Na aša Golubo ić
This pape p esen s an empi ical con ibu ion o he li e a u e ha ends o explain a ia ions in
co up ion pe cep ions. D awing on heo e ical assump ions abou he impac o co up ion on he
quali y o he business en i onmen , we explo e possible de e minan s o pe cei ed co up ion.
We a gue ha explaining he de e minan s o co up ion pe cep ions could be a aluable inpu o
c ea ing e ec i e an i-co up ion policies. In he pape , we pe o m a de ailed analysis on he case
o Se bia, a ansi ion coun y wi h ela i ely widesp ead co up ion in he business en i onmen .
Using he non-pa ame ic analysis o a iance es , we examine he signi i cance o di e ences
in he pe cei ed sp ead o co up ion ac oss a numbe o independen a iables ( egions, size o
locali y, indus y, size, and yea s o ope a ion). Speci ying an o de ed logis ic eg ession model, we
es ima e he ela ion be ween co up ion pe cep ions and a numbe o po en ial causes: equencies
o uno i cial paymen s o gi s o di e en pu poses, he impac ha uno i cial paymen s o public
o i cials ha e on he business ope a ions o he esponden s, as well as a i udes o he esponden s
abou he quali y o he judicial sys em and poli ical s abili y. We i nd ha pe cep ions o co up ion
as an obs acle o business ope a ions can be linked o he equency o uno i cial paymen s o deal
wi h cus oms and axes, as well as he impac o uno i cial paymen s o local o egional go e nmen
o i cials on business pe o mance o he esponden s. The esul s p o ide use ul insigh s in o wha
policy measu es a e necessa y o educe he le el o co up ion, as well as how he e ec s o such
measu es can be assessed.
Key Wo ds: Co up ion, business en i onmen , in o mal paymen s.
JEL Classi i ca ion: D73, H11.
DOI: 10.15240/ ul/001/2018-4-004
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