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The impact of corruption on investment and financing in the European Union: new insights

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  • Jorge Farinha
  • Oscar López-de-Foronda

Abstract

Corruption is a phenomenon that is not just restricted to less developed nations, but also touches developed countries like those in the European Union, often seen as one of the least corrupt economic areas in the world. Corruption practices and perceptions can seriously hinder economic growth and innovation, This can be due to lower access to corporate funding, greater cost of capital, its effects on competition, misallocation of resources, and distortions in the composition of public spending and the effectiveness of government policies. This paper first provides a short discussion and an overview of some academic literature on the link between corruption, financing decisions and economic growth. It then summarizes the findings of the five papers in this special issue on the topic of Corruption in a European context, discusses some insights from their results and finally points out at some avenues for future research in related topics.

Suggested Citation

  • Jorge Farinha & Oscar López-de-Foronda, 2024. "The impact of corruption on investment and financing in the European Union: new insights," The European Journal of Finance, Taylor & Francis Journals, vol. 30(4), pages 339-344, March.
    • Handle: RePEc:taf:eurjfi:v:30:y:2024:i:4:p:339-344
    DOI: 10.1080/1351847X.2023.2240846
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