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The Effect of Corruption on Government Expenditure Allocation in OECD Countries

Author

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  • Ondřej Jajkowicz

    (Department of National Economy, VŠB - Technical University of Ostrava, Faculty of Economics, Sokolská třída 33, 701 21 Ostrava 1, Czech Republic)

  • Agata Drobiszová

    (Department of National Economy, VŠB - Technical University of Ostrava, Faculty of Economics, Sokolská třída 33, 701 21 Ostrava 1, Czech Republic)

Abstract

This paper empirically examines the effect of corruption on the allocation of government expenditures by function. Equations using pooled panel dataset for 21 OECD countries between 1998 and 2011 were tested, and the findings show that government expenditure on defense and general public services increase, while government expenditures on education, health, recreation, culture and religion decline with higher levels of corruption. This paper presents new results and new evidence on the link between corruption and allocation of government expenditures in OECD countries.

Suggested Citation

  • Ondřej Jajkowicz & Agata Drobiszová, 2015. "The Effect of Corruption on Government Expenditure Allocation in OECD Countries," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(4), pages 1251-1259.
    • Handle: RePEc:mup:actaun:actaun_2015063041251
    DOI: 10.11118/actaun201563041251
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    2. Tran, My Thi Ha, 2021. "Public Sector Management And Corruption In Asean Plus Six," OSF Preprints stxw4, Center for Open Science.
    3. Marwa Sahnoun & Chokri Abdennadher, 2020. "Education and Corruption: a Stochastic Frontier Analysis: Evidence from Developed and Developing Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 968-981, September.
    4. Pui Sun Tam, 2018. "Economic Transition and Growth Dynamics in Asia: Harmony or Discord?," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 60(3), pages 361-387, September.
    5. Marwa Sahnoun & Chokri Abdennadher, 2022. "Returns to Investment in Education in the OECD Countries: Does Governance Quality Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1819-1842, September.
    6. Remy Tehero & Emmanuel Brou Aka & Murat Cokgezen, 2020. "Drivers of the Quality of Electricity Supply," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 183-195.

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