Tuesday, July 31, 2007

POLITICAL ENTREPRNEURSHIP AND RENT-SEEKING IN SLOVENIA

An excellent column written by Stanislav Kovac appeared in today's edition of Slovenia's business daily Finance. In the economic view, the author analyzes the effects of corporate governance, takeovers and corporate management in a small economy (Slovenia) through political entrepreneurship and rent-seeking.

As every economist and student of economics (myself included) can tell, political entrepreneurship is one of the major sources of corruption and negatively affect the economic performance of a nation or country in the international perspective, through government intervention and strong ties between business community and political circles, and that political entrepreneurship causes risk aversion by impeding the output performance and establishing corporate oligarchies seeking rents and controlling the steps of economic policy.

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