Interrelations between transparency of local authorities and corruption: Evidence from municipal surveys in Ukrainian regional cities
-
Author(s)Artem ArtyukhovLink to ORCID Index: https://orcid.org/0000-0003-1112-6891
,
Yuliia YehorovaLink to ORCID Index: https://orcid.org/0000-0002-8756-4073
,
Serhiy LyeonovLink to ORCID Index: https://orcid.org/0000-0001-5639-3008
,
Lesia TykhonchukLink to ORCID Index: https://orcid.org/0000-0001-6807-8232
,
Yuriy VasylyshenLink to ORCID Index: https://orcid.org/0000-0002-7759-3065
,
Serhii DrozdLink to ORCID Index: https://orcid.org/0000-0002-0716-3078
,
Yaroslаv ReshetniakLink to ORCID Index: https://orcid.org/0000-0003-0806-0801
-
DOIhttp://dx.doi.org/10.21511/pmf.13(2).2024.14
-
Article InfoVolume 13 2024, Issue #2, pp. 168-181
- 84 Views
-
30 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Considering Ukraine’s corruption scandals at all levels of public governance, combating corruption and enhancing transparency have become a pivotal factor in maintaining the trust of Ukrainian citizens and foreign partners in central and local authorities. It is also an essential prerequisite for Ukraine’s prospective membership in the EU and the allocation of financial assistance from external donors. The study aims to examine how transparency in local governance influences the level of corruption in regional cities of Ukraine. The paper examines how transparency in local authorities relates to different types of corruption, including bribery within municipal services, healthcare, and other public sectors. Utilizing panel data from 24 Ukrainian cities collected between 2017 and 2020 (all-Ukrainian sociological municipal survey and project ‘Transparent, Financially Sound and Competitive Local Governments in Ukraine’), the study employs both random and fixed-effects panel regression analyses to assess the impact of various governance indicators on corruption levels across different sectors, including municipal services, healthcare, and education. The findings suggest that higher transparency of the local authorities is generally associated with lower levels of bribery in the housing and communal services sector (estimation coefficient = –0.204226), in registration and licensing institutions (–0.5353756), in healthcare institutions (–0.2032171), and experience of bribing local authorities (–0.2505674). The analysis concludes that enhancing transparency may significantly reduce corrupt practices within local government operations, thereby strengthening public trust and bringing Ukraine closer to meeting European Union standards.
Acknowledgment
Serhiy Lyeonov, Serhii Drozd, and Yaroslаv Reshetniak thank the project 0123U101945 “National security of Ukraine through prevention of financial fraud and money laundering: war and post-war challenges” for carrying out their part of this research.
This study was funded by the European Union grant “NextGenerationEU through the Recovery and Resilience Plan for Slovakia” (No. 09I03-03-V01-00130) and project VEGA – 1/0392/23 “Changes in the approach to the creation of companies’ distribution management concepts influenced by the effects of social and economic crises caused by the global pandemic and increased security risks.”
- Keywords
-
JEL Classification (Paper profile tab)D73, H70, H83, C23
-
References54
-
Tables3
-
Figures2
-
- Figure 1. The confidence intervals for the panel regression coefficients
- Figure 2. Scatter plot matrix X, Y3, Y4, Y6, Y8
-
- Table 1. Input data
- Table 2. Random effects panel regression for the dependent variable Y1
- Table 3. Summary of independent variables whose influence was found to be significant
-
- Acar, A. Z., & Kara, K. (2023). Identifying the effects of corruption perception on the relationship between international trade and logistics performance in developing countries. Business, Management and Economics Engineering, 21(1), 63-83.
- Alyaseri, I., Furaijl, H., Mizban, B., Almagtome, A., & Al-Yasiri, A. (2024). Public sector governance as a tool to enhance the productivity of government spending: An international comparative study. Polish Journal of Management Studies, 29(2), 48-65.
- Amrani, N., Sadik, M., Chnigri, Y., Hemmi, M., Slimani, H., & Skačkauskienė, I. (2022). Toward value creation in local authorities: The role of information and communication technologies. Business, Management and Economics Engineering, 20(2), 358-388.
- Androniceanu, A. (2023). The new trends of digital transformation and artificial intelligence in public administration. Administratie si Management Public, 40, 147-155.
- Awojobi, O. N., & Adeniji O. A. (2023). Policy transfer and health policymaking process: The case of social health insurance in Ghana. Health Economics and Management Review, 4(2), 1-23.
- Bartulovic, M., Aljinovic, N., & Piplica, D. (2023). Determining the relationship between corruption and money laundering. Montenegrin Journal of Economics, 19(2), 109-118.
- Blahuta, R., Blikhar, V., Hodiak, A., Slyvka, M., & Batko, I. (2023). Economic and legal analysis of socio-economic factors of the emergence of threats to the system of counteracting money laundering and terrorism financing in Ukraine. Financial and Credit Activity Problems of Theory and Practice, 2(49), 264-273.
- Bozhenko, V. V., Lyeonov, S. V., Polishchuk, E. A., Boyko, A. O., & Artyukhova, N. O. (2022). Identification of determinants of corruption in government: A mar-spline approach. Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu, (6), 176-180.
- Bozhenko, V., Buriak, A., Bozhenko, A., & Roienko, O. (2023). Transparency and corruption prevention in financing climate action. Financial Markets, Institutions and Risks, 7(2), 88-94.
- Brüderl, J., & Ludwig, V. (2015) Fixed-effects panel regression. In H. Best & C. Wolf (Eds.), The SAGE Handbook of Regression Analysis and Causal Inference (pp. 327-358). London, UK: SAGE Publications Ltd.
- Calisto, M. de L., Costa, T., Afonso, V. A., Nunes, C., & Umbelino, J. (2023). Local governance and entrepreneurship in tourism – A comparative analysis of two tourist destinations. Journal of Tourism and Services, 14(27), 22-38.
- Djouadi, I., Zakane, A., & Abdellaoui, O. (2024). Corruption and economic growth nexus: Empirical evidence from dynamic threshold panel data. Business Ethics and Leadership, 8(2), 49-62.
- Dobrovolska, O., Kolotilina, O., & Ostapenko, M. (2024a). Forecasting Macroeconomic Dynamics in Ukraine: The Impact of a Full-Scale War. SocioEconomic Challenges, 8(3), 211-237.
- Dobrovolska, O., Sonntag, R., Mynenko, S., & Kosyk, D. (2024b). A fair investment environment: The impact of the shadow economy, the harshness of the courts against corrupt officials, tax pressure and restrictions on business. Business Ethics and Leadership, 8(2), 200-218.
- Dobrovolska, О., Moskalenko, S., Kucher, G., Skoryk, H., & Mudra, Y. (2022). To the problem of public management of financial and economic security of Ukraine in the conditions of the COVID-19 pandemic. Financial and Credit Activity Problems of Theory and Practice, 1(42), 335-341.
- Drăcea, R. M., Pirtea, M. G., Cristea, M., Noja, G. G., & Ciobanu, L. (2024). Budget transparency and good governance for human development and citizens’ well-being. New empirical evidence from the European Union. Engineering Economics, 35(3), 328-347.
- Fitrianto, A., & Musakkal, N. F. K. (2016). Panel data analysis for sabah construction industries: Choosing the best model. Procedia Economics and Finance, 35, 241-248.
- Gasimov, I., Jabiyev, F., & Asgarzade, G. (2023). Institutional quality and economic growth in the non-EU post-Soviet countries: Does energy abundance matter? Economics and Sociology, 16(2), 139-147.
- Holtfort, T., & Horsch, A. (2024). Quantum economics: A systematic literature review. SocioEconomic Challenges, 8(1), 62-77.
- Huntington, S. P. (1968). Political order in changing societies. New Haven and London: Yale University Press.
- Institute for Economic and Social Reforms (INEKO) & International Center for Policy Studies (ICPS). (n.d.). Transparency and financial health of 50 largest cities and 24 regions.
- International Monetary Fund (IMF). (2024). IMF executive board completes the fourth review of the Extended Fund Facility arrangement for Ukraine. IMF Communications Department.
- International Republican Institute (IRI). (n.d.). The All-Ukrainian Sociological Municipal survey.
- Jiartana, I. W., Riana, I. G., Wibawa, I. M., & Surya, I. B. (2023). Organisational citizenship behaviour in public service: Integrating public service motivation and sense of community. Polish Journal of Management Studies, 27(1), 117-132.
- Kaya, H. D. (2023). The global crisis, government contracts, licensing and corruption. SocioEconomic Challenges, 7(4), 1-7.
- Kolomiiets, S., Buriak, A., & Fritsak, M. (2023). Transparency of social-economic determinants in developing the efficient public healthcare system. Health Economics and Management Review, 4(2), 61-73.
- Kovbasyuk, L., Vakulenko, Y., Ivanets, I., Bozhenko, V., & Kharchenko, D. (2024). Forecast of corruption: From ethical to pragmatic considerations. Business Ethics and Leadership, 8(2), 184-199.
- Kuzior, A., Vasylieva, T., Kuzmenko, O., Koibichuk, V., & Brożek, P. (2022). Global digital convergence: Impact of cybersecurity, business transparency, economic transformation, and AML efficiency. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), Article 195.
- Kuzior, O., Kostenko, A., Sotnyk, I., Yulija, C., Tuliakov, O., & Podmanicka, M. (2023). Socioeconomic sustainability and the solidarity economy formation under the war conditions in Ukraine. Financial and Credit Activity Problems of Theory and Practice, 5(52), 256-267.
- Kuzmenko, O., Bilan, Y., Bondarenko, E., Gavurova, B., & Yarovenko, H. (2023). Dynamic stability of the financial monitoring system: Intellectual analysis. PLOS ONE, 18(1), Article e0276533.
- Linhartová, V., & Halásková, M. (2022). Determinants of corruption: A panel data analysis of Visegrad countries. Equilibrium. Quarterly Journal of Economics and Economic Policy, 1(1), 51-79.
- Linhartová, V., & Pucek, M. J. (2024). Corruption and human development: Panel data analysis in transition economies. Montenegrin Journal of Economics, 20(2), 169-182.
- Melnyk, L., Matsenko, O., Kubatko, O., Korneyev, M., & Tulyakov, O. (2022). Additive economy and new horizons of innovative business development. Problems and Perspectives in Management, 20(2), 175-185.
- National Anti-Corruption Bureau of Ukraine (NABU). (2022). Corruption in Ukraine 2021: Understanding, perception, prevalence.
- Němečková, T., & Hayat, A. (2022). Does trade openness improve the quality of domestic institutions? Evidence from Africa. Equilibrium. Quarterly Journal of Economics and Economic Policy, 17(4), 881-908.
- Njegovanović, A. (2023). Quantum entanglement of the brain, dynamics of information, and intelligent finance. Financial Markets, Institutions and Risks, 7(3), 12-30.
- Pogorelov, Y., & Polishchuk, Y. (2024). Path of privatization and its risks for Ukraine. In M. J. Grodzicki & A. Zachorowska Mazurkiewicz (Eds.), Public Policy in Transition Economies (pp. 89-113). Routledge.
- Polishchuk, Y., Maiurchenko, V., Tereshchenko, O., Budiaiev, M., & Onikiienko, S. (2023). Unveiling individuals’ financial behavior patterns: The Polish-Ukrainian case study in the pre-war period. Investment Management and Financial Innovations, 20(4), 242-256.
- Portal “Decentralization”. (n.d.). Terytorialni hromady [Territorial communities]. (In Ukrainian).
- Prati, G. (2024). Impact of episodes of regime transformation on subjective wellbeing: A panel event study. Economics & Sociology, 17(1), 11-22.
- Rouillé, A. (2024). Norm From The Top: A Social Norm Nudge To Promote Low-Practiced Behaviors Without Boomerang Effect. SocioEconomic Challenges, 8(1), 123-142.
- Suhanyi, L., Gavura, S., & Suhanyiova, A. (2024). E-government and the sustainable public administration: Digital interaction with public authorities in the regions of the EU. Transformations in Business & Economics, 23(1), 106-126.
- Tiganasu, R., Pascariu, G., & Lupu, D. (2022). Competitiveness, fiscal policy and corruption: Evidence from Central and Eastern European countries. Oeconomia Copernicana, 13(3), 667-698.
- Transparency International. (2021). Corruption Perceptions Index 2021.
- Transparency International. (2023). Corruption Perceptions Index 2023.
- Utkina, M. (2023). Leveraging blockchain technology for enhancing financial monitoring: Main challenges and opportunities. European Journal of Interdisciplinary Studies, 15(2), 134-151.
- Vasylieva, T., Kasperowicz, R., Tiutiunyk, I., & Lukács, E. (2023). Transparency and trust in the public sector: Targets and benchmarks to ensure macroeconomic stability. Journal of International Studies, 16(4), 117-135.
- Virlanuta, F. O., Barbuta-Misu, N., Bacalum, S., David, S., & Moisescu, S. (2024). Digitalisation of public services in Romania. A correlational study. Transformations in Business & Economics, 23(2), 53-71.
- Waldman, D. (2024). Replace government healthcare with patient-controlled health care. Health Economics and Management Review, 5(1), 80-89.
- World Bank. (2017). World Development Report 2017: Governance and the Law. Washington, DC.
- Xiao, Y., Qiao, H., & Xie, T. (2024). Does online media attention improve China’s green fund performance? Journal of Business Economics and Management, 25(3), 455-473.
- Yarovenko, H., Vasilyeva, T., Ustinovichius, L., & Remsei, S. (2024). Illicit practices: Experience of developed countries. Journal of International Studies, 17(2), 146-177.
- Zámek, D., & Zakharkina, Z. (2024). Research trends in the impact of digitization and transparency on national security: Bibliometric analysis. Financial Markets, Institutions and Risks, 8(1), 173-188.
- Zolotova, O., Ivanova, V., Symak, D., Kudinov, O., & Slavuta, O. (2023). Economy during martial law: Problems and ways to overcome the crisis (Ukrainian experience). Financial and Credit Activity Problems of Theory and Practice, 3(50), 265-281.
-
Modern technologies of detection and prevention of corruption in emerging information society
Problems and Perspectives in Management Volume 16, 2018 Issue #1 pp. 58-67 Views: 1985 Downloads: 423 TO CITE АНОТАЦІЯWith the development of the information society, there has been rapidly growing number of international research on the role of various (information, innovation, intelligent) technologies as a catalyst to fight corruption. As you know, the problems posed by corruption are economic, social and political consequences. In recent years economists and various researchers have shown increasing interest in studying the phenomenon of corruption. Many researchers in the field of studying corruption phenomenon are of theoretical nature, which studied different behaviors without having developed effective methods and technologies to identify and prevent corruption in the various spheres of government. In this regard, there is a need to study the world experience of application of technologies in the prevention of corruption and anti-corruption platform in Ukraine. This will allow to adapt them to positive experience in the implementation of mechanisms to identify and prevent corruption in Ukraine. The authors believe that to obtain a more accurate picture of the corruption situations that provide characteristics and its quantitative description is possible only by means of modelling the corruption phenomenon. In this regard, the analysis of theoretical models of corruption was made: the modelling made by the mathematical notation of the models and conclusions on the effectiveness of their application in management. Using simulation, the authors came to the conclusion that the detection and prevention of corruption should be carried out with the use of technologies and the system approach: from the study of statistics and use of anti-corruption platforms, public registers and databases to logical and probabilistic (LP) risk models of corruption.
-
Level of shadow economy in Ukraine: reasons and ways to overcome
Alina Bukhtiarova ,
Arsen Hayriyan ,
Nataliia Vynokurova
doi: http://dx.doi.org/10.21511/pmf.07(1).2018.01
Public and Municipal Finance Volume 7, 2018 Issue #1 pp. 6-11 Views: 1820 Downloads: 146 TO CITE АНОТАЦІЯThe article offers an investigation of the level of the shadow economy in Ukraine in the period 2007–2016, the structure of the shadow (“grey”) economy in the sectoral section, Ukraine’s place in world rankings in terms of economic freedom, corruption, favorable business conditions, and competitiveness. The main reasons of high level of shadow sector of the national economy are considered, and several measures regarding the reduction of the shadow economy in Ukraine and improvement of its economic situation are presented.
-
Environmental responsibility mechanism development in the public sector of the economy
Inna Makarenko ,
Diana Bychenko ,
Serhiy Makarenko ,
Gunay Qasimova
doi: http://dx.doi.org/10.21511/ee.09(3).2018.04
Environmental Economics Volume 9, 2018 Issue #3 pp. 28-41 Views: 1683 Downloads: 182 TO CITE АНОТАЦІЯEnvironmental responsibility mechanism in the public sector of the economy has an important sense in UN Sustainability Development Goals achievement, as well as in ensuring the competitiveness of the state-owned companies and the state as a whole. Sustainability concept, concept of “smart cities and smart communities” and the implementation of public administration reform, the necessity to increase the transparency of state-owned companies and the responsibility of municipalities to communities determine the reasonability and urgency in environmental responsibility mechanism development. Systematization and comparative analysis of world and national experience of environmental responsibility mechanism development in the public sector of the economy were made. The author’s approach to the structuring of the mechanism of environmental responsibility in the public sector was developed. Public policy peculiarities implementation in the field of environmental responsibility were investigated considering the levels of regulation of such liability: in state-owned companies as models for other sectors of the economy; in public authorities and municipalities.
