 The performance of politically connected firms in South East Europe: state capture or business capture?Post-Communist Economies, 2023, vol. 35, issue 4, 351-367 Abstract: This article investigates the effects of the political connectedness on the business performance of private sector firms in South East Europe. This question is relevant to contemporary ideas about the importance of ‘state capture’ in the region, and the article provides a new perspective on the nature and consequences of this phenomenon. Analysis of survey data reveals that political connections tend to undermine the business performance of connected firms, with a potential negative impact on the economic development of the countries concerned. It is argued that this process is better described as ‘business capture’ rather than ‘state capture’. The terminology is important as it suggests how policies might be used to manage this issue. The negative effect on business performance is substantial, especially in service sectors and in countries of the Western Balkans. The EU member states of the region are relatively immune from the negative effects of business capture. Date: 2023 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:pocoec:v:35:y:2023:i:4:p:351-367 Ordering information: This journal article can be ordered from DOI: 10.1080/14631377.2023.2188694 Access Statistics for this article Post-Communist Economies is currently edited by Roger Clarke More articles in Post-Communist Economies from Taylor & Francis Journals |
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