Relationship Between Corruption and Government Spending – the Example of Rich European Countries
Relationship Between Corruption and Government Spending – the Example of Rich European Countries

Summary/Abstract: The article is a voice in the discussion of the relationship between corruptionand government spending in rich European countries. Using macroeconomic data for rich European countries in 1996–2015, the correlation between corruption and the government spending rate was verified. Econometric research confirmed the impact of corruption onthe government spending rate. This dependence has the shape of a parabola with the arms pointing upwards, and the values of corruption indicators are on the declining part of the parabola, which means limiting the rate of government spending as a result of combating corruption. Research suggests that corruption-reducing countries will benefit – especially those that reduced corruption significantly.

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