Does Transparency Mitigate the Impact of Corruption on Government Fiscal Performance? Evidence from Chinese Municipalities
Abstract
Existing literature emphasizes the importance of fiscal transparency in good governance, but the underlying mechanisms between fiscal transparency, corruption, and performance remain unclear. Drawing on principal-agent and rent-seeking theories, and using a panel of 281 municipalities, this study finds that fiscal transparency moderates the negative relationship between corruption and government fiscal performance, and exhibits a U-shaped relationship with debt level and an inverted U-shaped relationship with expenditure efficiency. The findings of this research provide new insights and evidence linking transparency, corruption, and fiscal performance, and suggest useful policy implications for governments worldwide to combat corruption and improve their fiscal outcomes.
Fields of Study & Subjects
Corruption and Economic Development
Media Influence and Politics
China's Socioeconomic Reforms and Governance
Publication details
- Journal / source
- Public Performance & Management Review
- Publisher
- Informa UK Limited
- Volume
- 49
- Issue
- 4
- Pages
- 963–998
- Publication date
- 25 February 2026
- Language
- EN