Corruption in EU Funds? Europe-wide evidence on the corruption effect of EU funded public contracting

Fazekas, M. and Tóth, I. J. (2015). Corruption in EU Funds? Europe-wide evidence on the corruption effect of EU funded public contracting. GTI-WP/2015:01, Budapest: Government Transparency Institute.

It is theoretically ambiguous and empirically contested whether EU Funds contribute to lower corruption and better governance or the opposite. Many recipient countries benefit to a substantial degree with allocations amounting to 2-4% of their annual GDP. A range of positive and negative cases has been uncovered by the European Commission, national governments and the media, however, there has been no Europe-wide quantitative evaluation looking at the micro-level, arguably where corruption takes place. …

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Toolkit for detecting collusive bidding in public procurement – With examples from Hungary

Tóth, B, Fazekas, M, Czibik, Á, Tóth, I. J. (2014). Toolkit for detecting collusive bidding in public procurement – With examples from Hungary. GTI-WP/2014:02, Budapest: Government Transparency Institute.

Based on a synthesis of literature to-date, this paper provides a flexible indicator set deployable as a toolkit across many countries for detecting collusive bidding in public procurement. While no one-size-fits-all approach exists in detecting collusion, robust elementary indicators and analytical tools for adapting them to local contexts can be developed. The paper delivers a conceptual definition and theoretical discussion for each indicator as well as a complex empirical assessment using data …

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From corruption to state capture: A new analytical framework with empirical applications from Hungary

Fazekas, M., Tóth, I. J. (2014). From corruption to state capture: A new analytical framework with empirical applications from Hungary. GTI-WP/2014:01, Budapest: Government Transparency Institute.

State capture and corruption are widespread phenomena across the globe, but their empirical study is still highly challenging. This paper develops a new conceptual and analytical framework for gauging state capture based on micro-level contractual networks in public procurement. To this end, it first establishes a robust measure of corruption risks in public procurement transactions focusing on relationships between pairs of issuers and suppliers. Second, it searches for clusters of high corruption risk organisations in …

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Are EU funds a corruption risk? – The impact of EU funds on grand corruption in Central and Eastern Europe

Fazekas, M., Chvalkovska, J., Skuhrovec, J., Tóth, I. J., King,  L. P. (2013). Are EU funds a corruption risk? – The impact of EU funds on grand corruption in Central and Eastern Europe. GTI-WP/2013:03, Budapest: Government Transparency Institute.

The paper explores the impact of EU funds on institutionalised grand corruption in public procurement between 2009-2012 in three countries: Czech Republic, Hungary, and Slovakia. We analyse a unique pooled database containing contract-level public procurement information for all three countries. We develop a composite corruption risks indicator based on the incidence and logical structure of ‘red flags’ in individual public procurement transactions. …

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Anatomy of grand corruption: A composite corruption risk index based on objective data

Fazekas, M., Tóth, I. J., King,  L. P. (2013). Anatomy of grand corruption: A composite corruption risk index based on objective data. GTI-WP/2013:02, Budapest: Government Transparency Institute.

Although both the academic and policy communities have attached great importance to measuring corruption, most of the currently available measures are biased and too broad to test theory or guide policy. This article proposes a new composite indicator of grand corruption based on a wide range of elementary indicators. These indicators are derived from a rich qualitative evidence on public procurement corruption and a statistical analysis of a public procurement data in Hungary. …

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