Causes and Determinants of Perceived Corruption in the EU countries: a Panel Data Approach

The current research aims at analyzing the determinants of corruption in the European Union structure, with a focus on economic, social, and political determinants, for the 2000-2021 period, through panel data regressions. The main findings emphasize that institutional quality, captured through voice and accountability, government effectiveness, and regulatory quality variables proved a significant negative relation to increased corruption. Furthermore, government expenditure, the population’s level of education, and foreign investments are factors that can be used in the fight against corruption. The main factors identified as contributing to increased corruption levels in the European Union are the unemployment rate, significant for all considered models, as well as increased inflation.