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The impact of corruption on EU financial aid in European Neighbourhood countries

Magdalena Lyubenova won the Transparency International competition for the best anti-corruption thesis at the College of Europe for her study of the impact of corruption on the European Neighbourhood Policy.

Despite the widespread belief that financial support fosters economic activity, this analysis finds that the effect is dependent upon corruption levels. The results of this study underline the importаnce of corruption having a direct impact on economic growth аs well аs being a moderаtor of the efficiency of the EU financial assistance provided to the Neighbourhood countries.
The paper finds that the European funds have negative impact on the majority of Partnership states, while at the same time lower corruption can contribute to their positive effect.

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