Corruption, Competition, and Judiciary Independence in the Eastern-European

The airport industry in Eastern Europe has undergone a lot of changes in the last decade due to liberalization, commercialization, privatization and regulatory changes. However, in some developing countries like the Republic of Moldova has been suffering from high level of corruption and weak judiciary independence. In this paper, we analyze the key aspects of the airline market’s barriers. How does corruption affect the number of operating firms in the airline market? Does higher concentration level create a barrier to the potential businesspersons? After a review of the literature on corruption, competition in the airline market, judiciary independence and concentration index, we analyze the number of operating airlines in ten Eastern European countries.