The Effect of Government Expenditure on Developing Corruption levels in Algeria: An empirical study for the period (2003-2018)

Abstract

Abstract: Public spending in Algeria has increased continuously since the beginning of the third millennium, with the aim of improving the country's economic situation, and the overall indicators of the nationaleconomy. but after nearly two decades of adopting an expansionary spending policy, most of the internaland external balance indicators have deteriorated and corruption levels have developed in the country. Theaim of this study is to find out whether public spending has a role in the spread of corruption. The studyfound, using the vector self-regression model (VAR), that capital expenditures contributed to thedevelopment of corruption levels, while operating expenses contributed to reducing levels of corruption inAlgeria during the period 2003-2018.