Trust and Perceived Corruption Among Ukrainian FirmsElena Denisova-Schmidt and Yaroslav Prytula Eastern European Economics, 2017, vol. 55, issue 4, 324-341 Abstract: This article investigates how firms build trust with one another and with third parties in endemically corrupt environments where trust is usually very low and significantly affected by corruption. Based on a representative survey of firms operating in Ukraine, an endemically corrupt environment, the authors explore some mechanisms for building trust. The study outcomes suggest positive correlations between the perception of corruption and trust among firms (especially through such mechanisms as using patronage at all levels, inviting business partners to restaurants or parties, and introducing business partners to family and friends), while other mechanisms (such as showing expertise in the field, developing communication competencies, and using notaries and lawyers to secure contracts) demonstrate no significant links. Moreover, the results demonstrate that foreign ownership might influence corruption and trust among firms. From a policy perspective, the authors recommend more work on understanding why firms engage in specific corrupt practices and less on destroying their informal relationships. International exposure might be an additional tool for mitigating corruption in Ukraine. Date: 2017 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:mes:eaeuec:v:55:y:2017:i:4:p:324-341 Ordering information: This journal article can be ordered from DOI: 10.1080/00128775.2017.1312455 Access Statistics for this article More articles in Eastern European Economics from Taylor & Francis Journals |
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