Confidence in Formal Institutions and Reliance on Informal Institutions in Bosnia and Herzegovina

20 Pages Posted: 28 Jun 2011

See all articles by Adnan Efendic

Adnan Efendic

University of Sarajevo - Faculty of Economics

Geoff T. Pugh

Staffordshire University Business School, UK

Nick J. Adnett

Staffordshire University, UK

Date Written: July 2011

Abstract

This article uses survey data to investigate the relationship between citizens’ confidence in formal institutions and reliance on informal institutions in Bosnia and Herzegovina (BiH). We find an endogenous substituting relationship and that the different institutional structures currently existing in the two entities in BiH are significantly linked to respondents’ confidence in formal and reliance on informal institutions. In addition, perceptions of higher indirect costs of institutions and a lack of their improvement are associated with a lower confidence in formal and a greater reliance on informal institutions; the minority ethnic groups in each region are less confident in formal and rely more on informal institutions compared to the majority group; and more reliance on informal institutions is found amongst males and respondents from urban areas.

Keywords: Formal institutions, informal institutions, Bosnia and Herzegovina

JEL Classification: P14, P30, P39

Suggested Citation

Efendic, Adnan and Pugh, Geoff T. and Adnett, Nick J., Confidence in Formal Institutions and Reliance on Informal Institutions in Bosnia and Herzegovina (July 2011). Economics of Transition, Vol. 19, Issue 3, pp. 521-540, 2011. Available at SSRN: https://ssrn.com/abstract=1873773 or http://dx.doi.org/10.1111/j.1468-0351.2010.00408.x

Adnan Efendic (Contact Author)

University of Sarajevo - Faculty of Economics ( email )

Obala Kulina Bana 7
Sarajevo
Bosnia and Herzegovina

Geoff T. Pugh

Staffordshire University Business School, UK ( email )

Leek Road
Stoke-on-Trent, ST4 2DF
United Kingdom
01782 204092 (Phone)

HOME PAGE: http://www.staffs.ac.uk/staff/profiles/gtp1.jsp

Nick J. Adnett

Staffordshire University, UK ( email )

United States

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