How Favoritism Affects the Business Climate: Empirical Evidence from Jordan

From: The Middle East Journal | Date: April 1, 2008| Author: Blume, Jonas; Speer, Johanna; Loewe, Markus | Copyright information

This article, based on research conducted in Jordan, discusses how favoritism affects the business climate. Jordan's business climate is mediocre in international and regional comparison, making it insufficient in light of the country's small domestic market. Businesspeople consider the complexity of administrative procedures to be a main problem for investors, along with a lack of fairness and predictability in administrative decisions. Favoritism, which is referred to as "using wasta," (con...

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