Full-text resources of CEJSH and other databases are now available in the new Library of Science.
Visit https://bibliotekanauki.pl

PL EN


2015 | 6 | 1 | 25-46

Article title

Corruption and System Change in the Czech Republic: Firm-Level Evidence

Title variants

Languages of publication

EN

Abstracts

EN
Corruption is a widespread phenomenon in all countries undergoing market transition. However, the Czech Republic stands apart, with its incredible entanglement of corruption, politics and business. Although corruption on the firm level in the Czech Republic is heavily criticized, the results of our in-depth interviews conducted with Czech SMEs showed that almost every firm has encountered some form of corruption and even used corruption to either increase sales, help negotiations, or increase production. Most of our respondents admitted that corruption was useful for day-to-day business. This article aims to obtain information about the state of corruption in enterprises in the Czech Republic and map the behaviour of entrepreneurs in companies. Our results offer ways to fight corruption: apart from highlighting the negative traits of corruption, emphasis should be made on determining to what extent corruption would be acceptable for firms and their clients. This could be useful for designing various state policies that might influence system change and market development in CEECs and both directly and indirectly influence the volume of corruption.

Publisher

Year

Volume

6

Issue

1

Pages

25-46

Physical description

Dates

published
2015-03-01
online
2015-04-10

Contributors

  • Department of marketing communication and PR, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 110 01 Praha 1, Czech Republic
  • Department of marketing communication and PR, Faculty of Social Sciences, Charles University in Prague,Smetanovo nábreží 6, 110 01 Praha 1, Czech Republic
  • Department of marketing communication and PR, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 110 01 Praha 1, Czech Republic

References

  • Ades A., Di Tella, R. (1999). Rents, competition, and corruption. American Economic Review, 89, 982-993.[Crossref]
  • Aidt T. S. (2009). Corruption, institutions, and economic development. Oxford Review of Economic Policy, 25(2), 271-291.[Crossref]
  • Batory, A. (2012). Why do anticorruption laws fail in Central Eastern Europe? A target compliance perspective. Regulation & Governance, 6(1), 66-82.
  • Berg V. Sanford, Liangliang, J. and Chen, L. (2012). Regulation and corporate corruption: new evidence from the telecom sector. Journal of Comparative Economics, 40(1), 22-43.[Crossref]
  • Besley T., McLaren, J. (1993). Taxes and bribery: the role of wage incentives. Economic Journal London, 103, 119-119.
  • Birciáková, N., Stávková, J. and Antošová, V. (2013). Income (In) Justice In The Czech Republic. DANUBE: Law and Economics Review, (3), 185-199.
  • Bliss Ch., Di Tella, R. (1997). Does competition kill corruption? Journal of Political Economy. 105, 1001-1023.[Crossref]
  • Bornstein M. (1999). Framework Issues in the Privatisation Strategies of the Czech Republic, Hungary and Poland. Post-Communist Economies, 11, 47-77. doi:10.1080/146313799-96048.[Crossref]
  • Buchanan J., Tullock, G. (1962). The Calculus of Consent: Logical Foundations of Constitutional Democracy. Ann Arbor, University of Michigan Press, MI.
  • Buehn A., Schneider, F. (2011). Shadow economies around the world: novel insights, accepted knowledge, and new estimates. International Tax and Public Finance, 19(1), 139-171.
  • Cisar O. (2003). Strategies for Usin Information Technologies Curbing Public Sector Corruption: The Case of the Czech Republic. Open Society Institute, Budapest.
  • Cooray A., Schneider, F. (2013). How Does Corruption Affect Public Debt. An Empirical Analysis, No. 2013-22.
  • David R. (2003). “Lustration Laws in Action: The Motives and Evaluation of Lustration Policy in the Czech Republic and Poland (1989-2001).” Law & Social Inquiry, 28(2), 387-439. doi:10.1111/j.1747-4469.2003.tb00197.x.[Crossref]
  • Edelman. (2013). Trustbarometer 2013. Retrieved March 19, 2013, from http://www.edelman.com/trust-downloads/global-results-2/. Local data for the Czech Republic (internal document).
  • Egger P., Winner, H. (2005). Evidence on Corruption as an Incentive for Foreign Direct Investment. European Journal of Political Economy, 21, 932-52.[Crossref]
  • Emerson, M. P., (2006). Corruption, competition and democracy. Journal of Development Economics, 81, 193-212.[Crossref]
  • Evans G., Whitefield, S. (1998). The Structuring of Political Cleavages in Post-Communist Societies: the Case of the Czech Republic and Slovakia. Political Studies, 46(1), 115-139. doi:10.1111/1467-9248.00133.[Crossref]
  • European Commission. (2014). Corruption. Report. Special Eurobarometer 397. Retrieved February, 2014 from http://ec.europa.eu/publicopinion/archives/ebs/ebs397en.pdf.
  • Favre B. V., Puthod, C. T. (2013). Resource and Skill Transfers in Subcontractor SME Acquisitions: Influence on the Long-Term Performance of Acquired Firms. European Management Review, 10(3), 117-135.[Crossref]
  • Fisman R., Svensson, J. (2007). Are Corruption and Taxation Really Harmful to Growth? Firm Level Evidence. Journal of Development Economics, 83(1), 63-75. [Crossref]
  • Flatten T. Ch., Isabell, G. G., Brettel, M. (2011).Absorptive capacity and firmperformance in SMEs: The mediating influence of strategic alliances. European Management Review, 8(3), 137-152.[Crossref]
  • GfK. (2010). Korupcní klima v Ceské republice. GfK research. Retrieved April 12, 2014, from http://www.transparency.cz/doc/projekty/NIS/Konference/MartinMravecGfKKorupcniklimavCeskerepublice.pdf.
  • Graeff P., Mehlkop, G. (2003). The impact of economic freedom on corruption: different patterns for rich and poor countries. European Journal of Political Economy, 19, 605-620.[Crossref]
  • Graycar, A., Prenzler, T. (2013). Understanding and Preventing Corruption. Palgrave Macmillan.
  • Green P., Ward, T. (2004). State Crime. Governments, Violence and Corruption, London a Sterling. Pluto Press.
  • Grodeland, A. (2005). Fighting Corruption and Promoting Integrity in Public Procurement. Paris: OECD.
  • Gupta, N., Ham J. C., Švejnar, J. (2000). Priorities and Sequencing in Privatization: Theory and Evidence from the Czech Republic.
  • Hamadi M. (2010). Ownership concentration, family control and performance of firms. European Management Review, 7(2), 116-131.[Crossref]
  • Herzfeld, T., Weiss, C. (2003). Corruption and legal (in) effectiveness: an empirical investigation. European Journal of Political Economy, 19(3), 621-632.[Crossref]
  • Hislope R. (2008). Corrupt Exchange in Divided Societies. The Invisible Politics of Stability in Macedonia in: Orenstein, M.A., Bloom, S., Lindstrom,N. (eds.). Transnational Actors in Central and East European Transitions, Pittsburgh, University of Pittsburgh Press, 142-161.
  • Holmes, L. (2003). Political Corruption in Central and Eastern Europe. Bull, M. J., Newell, J. L. (eds.). Corruption in Contemporary Politics, New York, Palgrave Macmillan, 193-206.
  • Jancsics, D. (2013). Petty corruption in Central and Eastern Europe: the client’s perspective. Crime, Law and Social Change, 60(3), 319-341. doi:10.1007/s10611-013-9451-0.[Crossref]
  • Janowicz M., Piaskowska D. and Trojanowski, G. (2004). Role of strategic investors in Polish companies: Catalysts for organizational change or opportunists?. European Management Review, 1(2), 145-156.[Crossref]
  • Johnson S., Kaufmann D. and Shleifer, A. (1997). The Unofficial Economy in Transition. Brookings Papers on Economic Activity. Brookings Institute, Washington, DC.
  • Jordan M. Jeffrey. (2002). Patronage and Corruption in the Czech Republic. SAIS Review, 22(2), 19-52. doi:10.1353/sais.2002.0038.[Crossref]
  • Kaufmann D., Wei, S. J. (1999). Does “Grease Money” Speed Up the Wheels of Commerce? National Bureau of Economic Research, NBER Working Paper 7093.
  • Kaufmann D. (2010). Can Corruption Adversely Affect Public Finances in Industrialized Countries. Brookings.
  • Klitgaard, R., Maclean-Abora, R. (2000). Corrupt Cities, ICS. Profess Consulting Kasl Kollmannová, D. (2012). CEO and Businesses are Losing Trust: Comparison of EU, USA, Czech and Slovak Republic. Central European Business Review, 1(1), 7-13.
  • KaslKollmanová, D. (2013). The Growth of Anti-CorruptionAttitudes in Czech Marketing Communication and PR: Anti-Corruption Fight as Marketing Tool. Central European Business Review, (1), 15-20.
  • Kasl Kollmannová, D., Matušková, A. (2014). Public affairs in the Czech Republic: an exploratory study of the current situation. Journal of Public Affairs, 14, 54-66.[Crossref]
  • Koudelková, P. (2013). Innovation factors influencing the growth of small and mediumsized enterprises. Brno University of Technology. Brno. Czech Republic.
  • Koutník O. (2012). Karel Janecek na naivních vlnách? Ceská Pozice. 2013.
  • Lambsdorff J. G. (2007). The Institutional Economics of Corruption and Reform: Theory, Evidence and Policy. Cambridge University Press, Cambridge.
  • Leff N. (1964). Economic Development through Bureaucratic Corruption. American Behavioral Scientist, 8(3), 8-14.[Crossref]
  • Lees-Marshment, J. (2009). Political Marketing: Principles and Applications. Routledge.
  • Li, H., Xu, L. C. and Zou, H. (2000). Corruption, income distribution, and growth. Economics and Politics, 12, 155-182.
  • Lízal L., Švejnar, J. (2000). Financial conditions and investment during the transition: evidence from Czech firms. CERGE-El Working Paper No. 153.
  • Lízal L., Kocenda, E. (2001). State of corruption in transition: case of the Czech Republic. Emerging Markets Review, 2(2), 138-160. doi:10.1016/S1566-0141(01)00014-0.[Crossref]
  • Lui, F. T. (1985). An equilibrium queuing model of bribery. Journal of Political Economy, 93, 760-781.[Crossref]
  • Mauro, P. (1995). Corruption and growth. Quarterly Journal of Economics, 110, 681-712.[Crossref]
  • Merton K. R. (1961). Social Problems and Sociological Theory. Merton, R. K., Nisbet, A. R. (eds.). Contemporary Social Problems, New York: Harcourt, Brace andWorld, Inc., 697-737.
  • Mo P. H. (2001). Corruption and economic growth. Journal of Comparative Economics, 29, 66-97.[Crossref]
  • Mravec, M. (2012). Korupcní klima v Ceské republice (Corruption Climate in the Czech Republic).Transparency International.Retrieved December 18, 2012, from http://www.transparency.cz/doc/projekty/NIS/Konference/MartinMravecGfKKorupcniklimavCeskerepublice.pdf.
  • Murphy K., Shleifer A. and Vishney, R. (1991). The allocation of talent: implications for growth. Quarterly Journal of Economics, 106, 503-530.[Crossref]
  • Nandini, G., Ham, J. C., Švejnar, J. (2008). Priorities and sequencing in privatization: Evidence from Czech firm panel data. European Economic Review, 52(2), 183-208.
  • Nguyen, T. T., Van Dijk, M. (2012). Corruption, growth, and governance: Private vs. state-owned firms in Vietnam. Journal of Banking & Finance, 36(11), 2935-2948.[Crossref]
  • North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press, Cambridge.
  • OCKO, P. (2012). Ministerstvo prumyslu a obchodu. Tisková konferenceVŠE a MPO, AnalýzaGEM: Príprava novéKoncepceMSP2014+. Praha.Retrieved from http://www.mpo.cz/dokument104425.html.
  • OECD. (2010). OECD Economic Surveys: Czech Republic 2010. OECD Publishing.
  • Otáhal T. (2006). Ekonomická analýza definice korupce. Národohospodárský obzor, 4(1), 50-60.
  • Paldam, M. (2002). The cross-country pattern of corruption: economics, culture and the seesaw dynamics. European Journal of Political Economy, 18, 215-240.[Crossref]
  • Pieroni, L., d’Agostino, G. (2013). Corruption and the effects of economic freedom. European Journal of Political Economy, 29, 54-72.[Crossref]
  • Rose-Ackerman S. (1999). Corruption and Government, Causes, Consequences and Reform. Cambridge, Cambridge University Press.
  • Rezanková, H. (2010). Analýza dat z dotazníkových šetrení. Professional Publishing.
  • Schneider F., Buehn A. and Montenegro, C. (2010). Shadow Economies All Over the World: New Estimates for 162 countries from 1999-2007, World Bank Policy Research Working Paper No. 5356.
  • Schneider, F. (2014). In the Shadow of the State - The Informal Economy and Informal Economy Labor Force. DANUBE: Law and Economics Review, (4), 227-248.
  • Smith, J. (1985). Market motives in the informal economy, in: Gaertner,W. andWenig, A. (eds.): The economics of the shadow economy, Heidelberg: Springer Publishing Company, 161-177.
  • Smith, M. et al. (2007). Corruption in the Czech Republic: Politicians and Managers’ Perceptions. Retrieved from http://www.dbm.cz/pfile/1Corruptionreporten.pdf.
  • Stephen F. K. (2007). Measuring corruption: A critique of indicators in Eastern Europe and Central Asia. Journal of Public Policy, 27, 255-91.
  • Staniszkis, J. (2009). O moci a bezmoci. Brno, Centrum pro studium demokracie a kultury.
  • Transparency International. (2013). How corrupt is your country? (n.d.). Retrieved February 15, 2014, from http://transparency.org/cpi2013.
  • Vedres, B. (2007). Pathways from postsocialism: ownership sequence and performance of firms in Hungary, 1991-1999. European Management Review, 4 (2), 93-105.
  • Wallace, C., Latcheva, R. (2006). Economic transformation outside the law: corruption, trust in public institutions and the informal economy in transition countries of Central and Eastern Europe. Europe-Asia Studies, 58(1), 81-102.[Crossref]
  • Wang, Y., You, J. (2012). Corruption and firm growth: Evidence from China. China Economic Review, 23(2), 415-433.[Crossref]
  • Zelený, M. (2003). Síte malých a stredních podniku - Interfiremní spolupráce jako zdroj konkurenceschopnosti. Sborník prednášek z mezinárodní konference JAKOST 2003. Ostrava: Dum techniky. ISBN 80-02-01558-4.
  • Zuzowski, R. (2004). Corruption in Eastern Europe. South African Journal of International Affairs, 11(2), 129-142.

Document Type

Publication order reference

Identifiers

YADDA identifier

bwmeta1.element.doi-10_1515_danb-2015-0002
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.