Corruption and poverty in Brazilian municipalities

Abstract

The article analyzes, through a panel data model, the impact of corruption on the poverty of municipalities in Brazil between 2005 and 2016, considering the Firjan Municipal Development Index (IFDM) as a poverty indicator and as an indicator of corruption the number of lawsuits, tried and investigated extracted from the Comptroller General of the Union (CGU). Among the results, it was found that the higher the occurrence of corrupt practices in the municipalities, the lower the chances of an increase in the IFDM index and, therefore, a decrease in poverty levels. Given the evidence presented in this study, it is suggested that strict anti-corruption measures be implemented to avoid wasting public resources aimed at eradicating poverty.