The Functionality of Informal Practices as Survival and Re-Distribution Mechanisms: The Socio-Economics of Informal Payments in Transition Economies

Master's Thesis from the year 2021 in the subject Economics - Other, grade: Distinction, language: English, abstract: Delve into the intricate world of post-socialist transition economies, where the lines between formal and informal practices blur, and discover the hidden socio-economic forces that shape everyday life. This compelling study sheds light on the pervasive phenomenon of informal payments and gifts within the public service sector, dissecting their multifaceted roles beyond simple corruption. Journey through the theoretical landscape, exploring how regionality, economic history, and societal structures influence the prevalence and nature of these practices. Uncover the potential of informal exchanges as mechanisms for economic redistribution and survival, challenging conventional understandings of corruption. Through rigorous quantitative analysis, drawing upon data from the EBRD and World Bank's Life in Transition Survey, this book unveils the nuanced impact of these practices on diverse socioeconomic groups. Explore the statistical model employed, offering a detailed interpretation of the regression analysis and robustness checks. Gain insights into how informal payments function, distinguishing between demanded payments indicative of corruption and other forms of informal exchange driven by "gratitude" or the desire to "grease the wheels". Navigate the complexities of the state's role and civil society's influence in shaping the dynamics of informality. Unearth the answers to crucial questions surrounding the effects on budget users and the overall socio-economic fabric of these nations. This book provides a comprehensive examination of informal practices, revealing their hidden functionalities and challenging existing paradigms, perfect for those interested in transition economics, corruption studies, and socio-economic development, offering a fresh perspective on the informal economy and its impact on post-socialist societies, using keywords such