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| Tekijä: | Wallace, C. Latcheva, R. |
| Otsikko: | Economic transformation outside the law: Corruption, trust in public institutions and the informal economy in transition countries of Central and Eastern Europe |
| Lehti: | Europe-Asia Studies
2006 : JAN, VOL. 58:1, p. 81-102 |
| Asiasana: | transition economies law public sector Central Europe Eastern Europe |
| Kieli: | eng |
| Tiivistelmä: | This article deals with the role of the informal economy, defined as the 'black' economy (here as: bl-ec.), in Central and Eastern European post-communist countries. It is shown that 1. in Serbia and Croatia, the bl-ec. is very important for supporting household (as: h-h.) incomes, 2. especially in Romania and Ukraine, the h-h. or social economies (as: soc-econs.) are predominant, and 3. especially in the Czech Republic and Hungary, the formal economy predominates over other economies. Further on, it is looked at what kinds of people participate in the different economies. It is concluded that whilst the h-h. and soc-econs. are a social safety net for the poor, the elderly and those in rural areas, the bl-ec. is more likely to be an option for those already better off to improve their incomes. It is also found that greater participation in the informal economy is associated with both loss of trust in public institutions and increased perception of corruption. It is therefore hypothesised that economic activities taking place 'outside the law' could lead to a decline in confidence in the state, although there are important variations between countries. |
SCIMA