Corruption risk and EU funding in public procurement across EU member states, 2007–2023

Abstract

Aid and subsidies can support development by addressing resource gaps, improving infrastructure, and strengthening institutional capacity. However, both theoretical and empirical research also highlights the potential adverse effects of aid—particularly in weak institutional environments—where it can undermine accountability, facilitate rent-seeking and corruption, and entrench corrupt elites. A key question, therefore, is how EU subsidies correlate with levels of corruption. This paper investigates this question using public procurement contract data from EU Member States between 2007 and 2023.