CEU Electronic Theses and Dissertations, 2013
| Author | Georgieva, Kristina Nikolaeva |
|---|---|
| Title | Arrested Development: Corruption and Regional Development in Bulgaria |
| Summary | This research uses disaggregated data of perceived corruption and regional data of macroeconomic performance in order to investigate the relationship between levels of perceived corruption and regional development on the NUTS 3 level in Bulgaria for the years 2004, 2007, and 2010. I use data collected through a nation-wide survey to create a proxy variable of corruption and estimate regional development through Gross Domestic Product per capita for the selected years. Through a multiple linear regression, I first establish that corruption is a function of the region of residence before moving onto the main question of whether perceived levels of corruption are a determinant of GDP. A simple linear regression shows no significant association between the two in 2004 and 2007. However, the results reveal that in 2010 regional GDP is in fact positively correlated to the perceived levels of corruption. In order to explain this shift, I look into NUTS level 3 data of amount of EU funds absorbed for the 2007-2009 period and find a meaningful relationship between the amount of assimilated funds and the perceived levels of corruption. I also establish that there is a positive association between the quantity of absorbed funds and the levels of GDP in 2010. Thus, I conclude that the positive relationship between corruption and GDP in 2010 can be explained through the absorption of EU funds during the 2007-2009 period. I then derive several policy recommendations. |
| Supervisor | Bekes, Gabor |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2013/georgieva_kristina.pdf |
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