Corruption and distortion of public expenditures: evidence from Africa

نویسندگان

چکیده

This study investigates the effect of corruption on trade-off between capital and current expenditures in a panel 48 African countries over period 2000–2016. Based statistical yearbooks, we compile disaggregated data public finances for find that high prevalence distorts composition at expense share expenditure. Specifically, an increase by one standard deviation is associated with decrease proportion expenditure from 29 to 18%. The results are robust various specifications estimation methods, including fixed effects instrumental variables approach. supportive argument demonstrates it seems more beneficial corrupted bureaucrats manipulate spending favor rather than expenditures. latter relies formal traceable procedures, whereas known be open use discretionary allocation.

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ژورنال

عنوان ژورنال: International Tax and Public Finance

سال: 2022

ISSN: ['0927-5940', '1573-6970']

DOI: https://doi.org/10.1007/s10797-021-09718-6