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The Puzzling Underuse of Arbitration in Post-Communist South-Eastern Europe

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  • Bruno Schonfelder

Abstract

Dispute resolution by arbitration is available in all post-communist Balkan countries but it has not become popular among businessmen. The article argues that this is a puzzle and not easy to rationalise. Arbitration services have advantages over state court services and some of these advantages arguably are particularly significant in post-communism. The article reports a survey of lawyers which suggests that even 15 years after the beginning of transition plain ignorance has remained a key explanatory factor for the failure of businessmen to use arbitration. Another finding is that trust in arbitration tribunals tends to be shaky. An argument rooted in the incomplete law literature is used to show that in some cicumstances arbitration tribunals may be more prone to favouritism than state courts.

Suggested Citation

  • Bruno Schonfelder, 2007. "The Puzzling Underuse of Arbitration in Post-Communist South-Eastern Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 19(1), pages 117-130.
  • Handle: RePEc:taf:pocoec:v:19:y:2007:i:1:p:117-130
    DOI: 10.1080/14631370601163285
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    Cited by:

    1. Stefan Voigt, 2009. "Does Arbitration Blossom when State Courts are Bad?," MAGKS Papers on Economics 200906, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Neshat Podvorica, 2015. "Alternative Remedies in Resolving Disputes in Transitional Countries and Their Impact in Foreign Direct Investment (FDI): Kosovo Case," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 4, April.

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