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How Corruption Affects Social Expenditures: Evidence From Russia

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  • Yuriy Timofeyev

Abstract

This paper clarifies the main theoretical issues of corruption. An estimate and branch analysis of corruption in Russia is offered. The research concentrates on effects produced by corruption on social expenditures. The analysis demonstrates how corruption influences the poverty situation after social transfers and on the general efficiency of social payments. Using the European Commission method and a corrected method, indicators of efficiency of social spending are calculated for Russia. Also, the existence of correlation between efficiency of social spending and corruption perception index calculated by Transparency International Agency is estimated for European Union countries and Russia. A few policy recommendations aimed at controlling corruption in modern Russia and optimization of public expenditures are offered.

Suggested Citation

  • Yuriy Timofeyev, 2011. "How Corruption Affects Social Expenditures: Evidence From Russia," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 5(4), pages 39-51.
    • Handle: RePEc:ibf:gjbres:v:5:y:2011:i:4:p:39-51
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    References listed on IDEAS

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    Cited by:

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    2. Tokunaga, Masahiro & Suganuma, Keiko & Odagiri, Nami, 2018. "From Russia to Eurasia : Specific Features of the “Russosphere” from the Perspective of Business Activities of Japanese Firms," RRC Working Paper Series 77, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    3. Nurudeen Abu & Joseph David & Musa Abdullahi Sakanko & Ben-Obi Onyewuchi Amaechi, 2022. "Oil Price and Public Expenditure Relationship in Nigeria: Does the Level of Corruption Matter?," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 59-80.
    4. Ichiro Iwasaki & Keiko Suganuma, 2015. "The impact of FDI and socio-cultural similarity on international trade: Poisson pseudo-maximum likelihood estimation of a Russian trade model," Economics Bulletin, AccessEcon, vol. 35(2), pages 1020-1033.
    5. Iwasaki, Ichiro & Suganuma, Keiko, 2013. "A Gravity Model of Russian Trade: The Role of Foreign Direct Investment and Socio-Cultural Similarity," RRC Working Paper Series 40, Russian Research Center, Institute of Economic Research, Hitotsubashi University.

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    More about this item

    Keywords

    Corruption; public expenditures; quantity effect; allocation effect; Russia;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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