Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Crony Sectors as a Barrier to Economic Well-Being and Ecologization (Case of Ukraine)
Issue: Vol. 11, No 3, 2018
Published date: 09-2018 (print) / 09-2018 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Viktor Koziuk
Ternopil National Economic University

Oleksandr Dluhopolskyi
Ternopil National Economic University

Antonina Farion
Ternopil National Economic University

Tetiana Dluhopolska
Ternopil National Economic University
Keywords: oligarchy, crony-sectors, ecologization, institutions, well-being, environmental taxes
DOI: 10.14254/2071-789X.2018/11-3/7
Index PUBMS: f9800933-cdf5-11e8-92b1-901b0efa6e97
Language: English
Pages: 113-132 (20)
JEL classification: A13, I31, P50

This paper investigates the relationship between oligarchic economies and the crony sector development, which includes industries with the dominating rent-seeking behavior. In order to analyze the period from 2006 till 2016, cross-countries’ data on the Power Distance Index, Crony Capitalism Index, Sustainable Society Index, among with the environmentally related taxes are referenced. Regression analysis for the distance to power and dependence on crony capitalism is carried out with a focus on the relation between crony capitalism and ecologization. Existence of a vicious cycle associated with hierarchical tolerance and barriers towards ecologization in modern welfare economics, is debated. Conclusions are made concerning the cultural and social factors having their direct impact on the existence of crony sectors and functioning of weak institutions


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