European Union funds and corruption in the ex-communist member states

The paper analyses the impact of European Union (EU) funds on corruption in the EU ex-communist countries by following a panel Autoregressive Distributed Lag (ARDL) approach. The panel includes 10 former EU communist countries, over 2007-2019. The key findings reveal that an improvement in the EU funds paid and their rate of absorption can reduce the level of corruption in the long-run in the recipient EU ex-communist countries. This is due to better monitoring of EU funds paid compared with national resources, and a more efficient and fairer channel of EU funds absorption. In parallel with the EU funds, corruption can be controlled in certain conditions by the degree of economic development, size of government, level of democratisation and religiosity.