How does corruption affect public debt? An empirical analysis

This paper examines the relationship between corruption and public debt in 106 countries. Results suggest that corruption leads to an increase in public debt. We also investigate if the effect of corruption on pblic debt is increased by government expenditure, the shadow economy and military expenditure. We find that the effect of corruption on public debt is compounded by increased government expenditure and increased size of the shadow economy.

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Year of publication:	2013
Authors:	Cooray, Arusha ; Schneider, Friedrich
Publisher:	Linz : Johannes Kepler University of Linz, Department of Economics
Subject:	corruption \| public debt \| government expenditure \| shadow economy \| military expenditure

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Series:	Working Paper ; 1322
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	773137955 [GVK] hdl:10419/97435 [Handle] RePEc:jku:econwp:2013_22 [RePEc]
Classification:	D78 - Positive Analysis of Policy-Making and Implementation ; E26 - Informal Economy; Underground Economy ; H2 - Taxation, Subsidies, and Revenue ; H11 - Structure, Scope, and Performance of Government ; H26 - Tax Evasion ; K42 - Illegal Behavior and the Enforcement of Law ; O5 - Economywide Country Studies ; O11 - Macroeconomic Analyses of Economic Development ; O16 - Financial Markets; Saving and Capital Investment ; O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Source:	EconStor

Persistent link: https://www.econbiz.de/10010368254