Testing the Level of Alternative Institutions as a Slowdown Factor of Economic Development: the Case of Montenegro
Author:Mimo Draškovic, Sanja Bauk, Dalia Streimikiene and Veselin Draskovic
JEL:E26, O17, P37, C25
DOI:
Keywords:alternative institutions, quasi-institutional monism, institutional pluralism,
multiple regression linear approach
Abstract:
The purpose of the article is to test public's perception of the opportunistic behavior and
alternative institutions existence and the degree of their influences on reproduction of the
economic crisis. For that purpose, besides the theoretical considerations, the paper
comprises quantitative analysis of affecting the inability of economic development, and
reproduction of crisis, by the following factors: (a) non-market enrichment and log-rolling
structures, (b) parties’ monopolies and lobbyism, and (c) systemic corruption. Multiple
regression linear approach is applied on a sample of 300 selected respondents in five towns
in Montenegro: Podgorica, Niksic, Cetinje, Herceg Novi, and Kotor. On the basis of the
conducted statistical examines: standard error of the regression estimate, correlation
coefficient, and coefficient of determination are calculated on the basis of previously
determined regression coefficients and forecast values of the linear function of free
variables (factors: a, b, and c). The regression plots for each of the considered cases, which
verify the starting hypothesis, are shown along with the discussion and conclusions. Our
results indicate the need to reduce and eliminate effects of the above factors in the society
and economy, since they represent concrete manifestations of alternative institutions’
negative impacts. The main conclusion of the research is that the authorities in Montenegro
should identify all of the channels through which alternative inst itutions do affect the
reduction of social and economic choices. In this sense, it is proposed overcoming the
monistic neoliberal policies, along with affirmation of institutional pluralism.