Acta Univ. Agric. Silvic. Mendelianae Brun. 2015, 63(4), 1251-1259 | DOI: 10.11118/actaun201563041251

The Effect of Corruption on Government Expenditure Allocation in OECD Countries

Ondřej Jajkowicz, Agata Drobiszová
Department of National Economy, V©B - Technical University of Ostrava, Faculty of Economics, Sokolská třída 33, 701 21 Ostrava 1, Czech Republic

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.

Keywords: effect, corruption, government, expenditure, allocation, growth, countries, equation, panel
Grants and funding:

This paper was financially supported within the V©B - Technical University SGS grant project [No. SP2014/145] "The Influence of Structure of Government Spending and Taxes on Selected Sectors and Economic Growth in the Czech Republic".

Prepublished online: September 2, 2015; Published: September 1, 2015  Show citation

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Jajkowicz, O., & Drobiszová, A. (2015). The Effect of Corruption on Government Expenditure Allocation in OECD Countries. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 63(4), 1251-1259. doi: 10.11118/actaun201563041251
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