Impact of Corruption on Public Debt: A Comparative Analysis of North Macedonia, Serbia and Albania

Öz

One of the leading issues that developing countries are consistently pursuing to address and mitigate is the issue of corruption, having in mind its significant impact on many aspects of societal and economic development. The impact of corruption on the political, social and institutional development of a country cannot be overstated; however, there are certain sectors in which the impact of corruption requires a more in-depth analysis to understand and utilise for policymaking, one of which is the role of corruption on public debt sustainability. Studies have shown that the impact of corruption on public debt requires an in-depth analysis, considering the multifaceted nature of the issue. Factors such as institutional quality, economic stability and development can be deciding factors on the severity and nature of the effect that corruption may have on public debt, from positive to negative impact, or from significant to insignificant levels of impact. The aim of this paper is to analyse the impact of corruption on the public debt in North Macedonia, Albania and Serbia, as case studies, based on the interpretation of collected data while also utilising, neighbouring states as referrals for the same models. The results produced by the models used in this paper demonstrate a considerable impact of corruption on public debt, whereas the impact in other macroeconomic indicators is much less significant.

Anahtar Kelimeler

• Correlation
• Growth
• Inflation
• Debt
• Deficit

Kaynakça

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