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Original Articles

Does governance explain unofficial activity?

Pages 537-539 | Published online: 06 Oct 2010
 

Abstract

The cross-country results presented here show that most aspects of governance affect transition and non-transition economies differently. For governments in transition, more regulation, greater voice and accountability, heightened government effectiveness, and stronger rule of law surprisingly matter very little. What matters most for these transition economies is political stability and insulating the country's business environment from corruption.

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