Can Rent-Seeking Behavior and Corruption Impact the Economic Wealth of European Union Member States?

Corruption and rent-seeking are widespread issues affecting economies regardless of their European Union (EU) membership or development level. This study aims to empirically analyze how these behaviors influence the economic performance of EU member states using also governance quality indicators...

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Main Author: Mihaela Barbuta (Matei)
Format: Article
Language:English
Published: Ovidius University Press 2025-02-01
Series:Ovidius University Annals: Economic Sciences Series
Subjects:
Online Access:https://stec.univ-ovidius.ro/html/anale/RO/2024i2/Section%205/1.pdf
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author Mihaela Barbuta (Matei)
author_facet Mihaela Barbuta (Matei)
author_sort Mihaela Barbuta (Matei)
collection DOAJ
description Corruption and rent-seeking are widespread issues affecting economies regardless of their European Union (EU) membership or development level. This study aims to empirically analyze how these behaviors influence the economic performance of EU member states using also governance quality indicators and a panel data regression model, thereby enhancing the understanding of the relationship between corruption, governance quality, and economic wealth within the EU. The period of study is from 2000 to 2019. The regression analysis indicates a negative relationship between higher levels of corruption and economic wealth across all examined countries, demonstrating that increased corruption leads to a decline in economic growth and prosperity. For all EU states, the governance quality variables do not appear to have an impact on economic wealth. Comprehensive reforms and a stronger anti-corruption effort in the public sector are urgently needed in developing countries to enhance accountability, transparency, and sustainable economic development.
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publisher Ovidius University Press
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series Ovidius University Annals: Economic Sciences Series
spelling doaj-art-e52b335b194949d9a2e50c01a49d77c22025-08-20T02:17:10ZengOvidius University PressOvidius University Annals: Economic Sciences Series2393-31272025-02-01XXIV2470479Can Rent-Seeking Behavior and Corruption Impact the Economic Wealth of European Union Member States?Mihaela Barbuta (Matei)0“Transilvania” University of Brașov, Department of Finance and Accounting, RomaniaCorruption and rent-seeking are widespread issues affecting economies regardless of their European Union (EU) membership or development level. This study aims to empirically analyze how these behaviors influence the economic performance of EU member states using also governance quality indicators and a panel data regression model, thereby enhancing the understanding of the relationship between corruption, governance quality, and economic wealth within the EU. The period of study is from 2000 to 2019. The regression analysis indicates a negative relationship between higher levels of corruption and economic wealth across all examined countries, demonstrating that increased corruption leads to a decline in economic growth and prosperity. For all EU states, the governance quality variables do not appear to have an impact on economic wealth. Comprehensive reforms and a stronger anti-corruption effort in the public sector are urgently needed in developing countries to enhance accountability, transparency, and sustainable economic development.https://stec.univ-ovidius.ro/html/anale/RO/2024i2/Section%205/1.pdfeconomic wealthrent-seekingcorruptionpublic choice
spellingShingle Mihaela Barbuta (Matei)
Can Rent-Seeking Behavior and Corruption Impact the Economic Wealth of European Union Member States?
Ovidius University Annals: Economic Sciences Series
economic wealth
rent-seeking
corruption
public choice
title Can Rent-Seeking Behavior and Corruption Impact the Economic Wealth of European Union Member States?
title_full Can Rent-Seeking Behavior and Corruption Impact the Economic Wealth of European Union Member States?
title_fullStr Can Rent-Seeking Behavior and Corruption Impact the Economic Wealth of European Union Member States?
title_full_unstemmed Can Rent-Seeking Behavior and Corruption Impact the Economic Wealth of European Union Member States?
title_short Can Rent-Seeking Behavior and Corruption Impact the Economic Wealth of European Union Member States?
title_sort can rent seeking behavior and corruption impact the economic wealth of european union member states
topic economic wealth
rent-seeking
corruption
public choice
url https://stec.univ-ovidius.ro/html/anale/RO/2024i2/Section%205/1.pdf
work_keys_str_mv AT mihaelabarbutamatei canrentseekingbehaviorandcorruptionimpacttheeconomicwealthofeuropeanunionmemberstates