Budget transparency and governance quality: a cross-country analysis

Marco Bisogno and Beatriz Cuadrado-Ballesteros

Public Management Review, 2022, vol. 24, issue 10, 1610-1631

Abstract: The aim of this study is to assess whether there is a relationship between budget transparency and governance quality. The so-called openness movement and the global financial crises, which have put significant pressure on governments to cut expenditures and ensure balanced budgets, have motivated this research. The public choice and principal-agent theories have been used to investigate this relationship, implementing econometric models based on a sample of 96 countries over the period 2008–2019. The results show that higher levels of budget transparency positively affect the quality of governance, and vice versa, documenting simultaneous causality between both issues.

Date: 2022
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DOI: 10.1080/14719037.2021.1916064

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