Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Testing the Level and Factors of Institutional Rationality in Montenegro, Serbia and Bosnia and Herzegovina
Issue: Vol. 9, No 2, 2016
Published date: 06-2016 (print) / 06-2016 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Mimo Draskovic
Sanja Bauk
Milica Delibasic
Keywords: institutions, institutional rationality, alternative institutions, opportunistic behavior, regression analysis
DOI: 10.14254/2071-789X.2016/9-2/2
Index PUBMS: ce0e6be5-027e-11e8-94c4-fa163e5d4f72
Language: English
Pages: 27-45 (19)
JEL classification: P37, C39

This paper analyzes the perception of the respondents in Montenegro, Serbia and Bosnia and Herzegovina regarding the level of institutional rationality and the deficit of basic selected factors that have a predominant impact on it. It uses and explains the conditional notion of institutional rationality as a specific form of bounded economic rationality. It starts from the basic hypothesis that during the long-lasting transition process there were four groups of inhibitors to the introduction and development of institutional rationality in the mentioned countries (rule of law, institutions, civil society and opportunistic behavior), the reason being their deficiency (underdevelopment). From the basic hypothesis, an auxiliary one arises - that overcoming the deficit of the mentioned inhibitors would have a direct and decisive impact on the increase in the level of institutional rationality, and thus, the impact on economic development. This primary hypothesis is experimentally proofed throughout appropriate multiple linear regression analysis.