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Assessment on the “institutional economics” of corruption. Business and development in Romania, between formal and informal practices

Author

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  • Cosmin Marinescu

    (The Bucharest University of Economic Studies)

  • Octavian-Dragomir Jora

    (The Bucharest University of Economic Studies)

Abstract

This paper intends to draw the attention on the very subtle consequences of the corruption in the operational field, the deviation from the institutional arrangement in use. We will not insist for example on the subject according to which “the public domain”, as expression of the “joint property”, but also of the “tragedy of the commons” may be considered in a meta-institutional sense as corrupt. Anyhow, many enough differences of operational corruption require the use of institutional compared opinions about “corruption on a background of corrupt institutions” vs. „corruption on a background of healthy institutions”. The first part of the study will present briefly an institutional perspective a priori the corruption and its impact on the economic climate, drawing the attention on the distortions this one causes to the durability of the overall economic performance. The second part will present a synopsis of the “tense relationship” existing in Romania between the actually productive business environment and the legal, political and administrative environment which tolerates / temps perverse practices, either for the eviction or capture of the relevant political decision, underlining the relationship between the phenomenon of corruption and the economic performance in our country.

Suggested Citation

  • Cosmin Marinescu & Octavian-Dragomir Jora, 2013. "Assessment on the “institutional economics” of corruption. Business and development in Romania, between formal and informal practices," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(Special 7), pages 603-616, November.
    • Handle: RePEc:aes:amfeco:v:3:y:2013:i:special7:p:603-616
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    Cited by:

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    2. Vladimir-Aurelian ENACHESCU & Vlad ROªCA, 2014. "Educational Counseling Approach for the Romanian Educational System," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(3), pages 321-333, July.
    3. Cristian PAUN, 2015. "The Role of European Union Funds in Economic Development," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 3(3), pages 463-481, September.
    4. Cosmin Ivascu, 2021. "The Role of European Funds in the Economic Development," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 24(79), pages 75-89, March.
    5. Judit Oláh & Zuzana Virglerova & József Popp & Jana Kliestikova & Sándor Kovács, 2019. "The Assessment of Non-Financial Risk Sources of SMES in the V4 Countries and Serbia," Sustainability, MDPI, vol. 11(17), pages 1-19, September.

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    More about this item

    Keywords

    Institutions; Business; Corruption; Economic Development;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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