Study on the Relationship of Grassroots Corruption and Government Expenditure Based On Panel Data

Abstract

The study found that the level of grassroots corruption and the scale of government spending was positively correlated, that is, the higher the level of grassroots corruption, the greater the size of government spending. What’s more, grassroots corruption will affect the government’s public expenditure structure, significantly increased the expenditure on science and technology, education, urban and rural community affairs, reducing the expenditure on national defense and health care. Therefore, suggest intensifying anti-corruption efforts and standardizing government approval flow. Strengthen the institutionalization of corruption and administrative accountability, to build a full range of social supervision system, so as to optimize the Structure of public expenditure, improve the use and allocation of public resources.