Public Corruption and Public Debt: Some Empirical Evidence

Grechyna, Daryna

doi:10.2139/ssrn.2052974

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Public Corruption and Public Debt: Some Empirical Evidence

12 Pages Posted: 7 May 2012

See all articles by Daryna Grechyna

Daryna Grechyna

University of Granada

Date Written: March 1, 2012

Abstract

Recent theoretical literature related high public debt to the presence of rent-seeking activities by the government (Bataglini and Coate, 2008, Yared, 2010). This paper tests the hypothesis that higher public corruption leads to higher public debt using a panel of OECD countries. The estimates, controlled for the countries' and time fixed effects, support the importance of public corruption in determining country's public debt.

Keywords: public debt, public corruption

JEL Classification: H11, H63

Suggested Citation: Suggested Citation

Grechyna, Daryna, Public Corruption and Public Debt: Some Empirical Evidence (March 1, 2012). Available at SSRN: https://ssrn.com/abstract=2052974 or http://dx.doi.org/10.2139/ssrn.2052974