<abstract xmlns="http://www.w3.org/1999/xhtml"><p> This paper investigates the empirical relationship between corruption, economic growth, and government spending in fourteen transitioning economies from 1995-2013. We find strong evidence of bilateral Granger causation between economic growth and corruption for the full sample but weaker evidence of such a relationship for four former Yugoslav republics. We also find bilateral Granger causality between government spending and corruption but a weaker unidirectional Granger causality from government spending to corruption in four former Yugoslav republics. Our results recommend caution when assuming that corruption is purely exogenous in empirical models.</p></abstract>

This paper investigates the empirical relationship between corruption, economic growth, and government spending in fourteen transitioning economies from 1995-2013. We find strong evidence of bilateral Granger causation between economic growth and corruption for the full sample but weaker evidence of such a relationship for four former Yugoslav republics. We also find bilateral Granger causality between government spending and corruption but a weaker unidirectional Granger causality from government spending to corruption in four former Yugoslav republics. Our results recommend caution when assuming that corruption is purely exogenous in empirical models.

Corruption in Transition Economies: Cause or Effect?

Zagreb International Review of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Corruption in Transition Economies: Cause or Effect?"}

This paper investigates the empirical relationship between corruption, economic growth, and government spending in fourteen transitioning economies from...

Corruption in Transition Economies: Cause or Effect?

Publicado en línea: 09 jun 2017

Páginas: 113 - 123

DOI: https://doi.org/10.1515/zireb-2017-0011

Palabras clave
economic growth, government spending, public corruption, Granger causality

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Corruption in Transition Economies: Cause or Effect?

Publicado en línea: 09 jun 2017

Páginas: 113 - 123

DOI: https://doi.org/10.1515/zireb-2017-0011

Palabras claveeconomic growth, government spending, public corruption, Granger causality

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Palabras clave
economic growth, government spending, public corruption, Granger causality