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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Bibliographic Details
Main Author: Mihaela Barbuta (Matei)
Format: Article
Language:English
Published: Ovidius University Press 2025-02-01
Series:Ovidius University Annals: Economic Sciences Series
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Online Access:https://stec.univ-ovidius.ro/html/anale/RO/2024i2/Section%205/1.pdf
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Summary: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.
ISSN:2393-3127