How Does Corruption Affect Public Debt? An Empirical Analysis

Arusha Cooray and Friedrich Schneider ()

No 2013-22, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: 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.

Keywords: corruption; public debt; government expenditure; shadow economy; military expenditure (search for similar items in EconPapers)
JEL-codes: D78 E26 H11 H2 H26 K42 O11 O16 O17 O5 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2013-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.econ.jku.at/papers/2013/wp1322.pdf (application/pdf)

Related works:
Journal Article: How Does Corruption Affect Public Debt? An Empirical Analysis (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jku:econwp:2013_22

Access Statistics for this paper

More papers in Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria Contact information at EDIRC.
Bibliographic data for series maintained by René Böheim ().