The Moderating Role of Corruption on the Nexus Between Government Spending and per Capita Income in the Emerging Economies of the BRICS

This paper investigates the moderating role of corruption on the relationship between government spending and per capita income in the BRICS countries (Brazil, Russia, India, China, and South Africa).The panel-corrected standard error model is used to examine the interactive links between government spending, corruption, and economic growth using panel data from the World Bank spanning the years 2000 to 2022.The results show that capital and current government spending positively impact economic growth, but these benefits are significantly offset by corruption.The study emphasizes the necessity of balanced anti-corruption measures to ensure that efforts to curb corruption do not inadvertently hinder the beneficial impacts of government spending on economic growth.The results provide valuable insights for policymakers in emerging economies, highlighting the importance of fostering good governance and effective fiscal policies to promote sustainable development.