Does the size of the government increase corruption? An analysis for brazilian municipalities

Abstract

The article analyzes the effects of government size on corruption in Brazilian municipalities between 2005 and 2016. An objective corruption measure is used, constructed from data provided by the Federal Comptroller General (CGU), using the panel data technique. The results revealed a significant and inverse relationship between government size and corruption in Brazilian municipalities. Therefore, corruption in Brazilian municipalities may not be related to the government’s size. In this sense, the issue of good governance in conjunction with the effectiveness of legal rules is highlighted as a way of inhibiting activities related to corruption in Brazilian municipalities.