BUDGET TRANSPARENCY - SUPPORTING FACTOR IN THE CAUSAL RELATIONSHIP BETWEEN GLOBAL COMPETITIVENESS AND CONTROL OF CORRUPTION

Abstract

In the last two decades, international institutions, donors, academics are interested in budgetary transparency that promotes public access to information about budgets, government policies and financial activities of governments in order to make them accessible to citizens. Social reformers promote the idea that a high score of open budget index is the main incentive to influence policymakers to adopt policies to reliably optimize public finances. The purpose of this paper is to analyze the influence of corruption at the level of sustainable prosperity, having as support factor the budgetary transparency. We also investigate the reasoning in reverse, where, in turn, corruption is influenced by the level of sustainable prosperity and we discover that the relationship between these two variables is circular. Evaluation of the results could serve as guidance for governments to investigate the effects of the adopted strategies for sustainable development and improving governance policies at national level through direct contribution to economic growth.