CORRELATION ANALYSIS BETWEEN BANKRUPTCIES, THE LEVEL OF CORRUPTION AND THE PUBLIC GOVERNANCE IN THE EUROPEAN UNION COUNTRIES AND REPUBLIC OF MOLDOVA

Neli MUNTEAN, Nicolae BALTEȘ*, Iulian MUNTEAN** Academia de Studii Economice a Moldovei, *Universitatea „Lucian Blaga” din Sibiu, România, **Universitatea Agrară de de Stat din Moldova

Abstract

The institution of bankruptcy is necessary and obligatory in any market economy. In most cases, a company's bankruptcy is determined by the simultaneous effect of several causes, both internal and external. Thus, it is important to investigate the evolution of bankruptcy and its general causes. It is therefore worth analysing the impact of corruption and that of public governance on the number of bankruptcies. Corruption is a widespread phenomenon throughout the world, but its level varies from one country to another, from one geographic region to another. The correlations between corruption and economic growth, fiscal pressure, and the efficiency of public governance have been extensively studied in literature. In order to achieve the research goal, we analysed the link between the level of corruption, public governance and the number of bankruptcies in the EU countries and the Republic of Moldova for the period 2013-2017. Based on the findings of this paper, the lesson for EU countries can be crucial. It was found that there is a causal relationship between the number of bankruptcies, the level of corruption and the level of efficiency of public governance. These factors need to be taken into account by the EU, which is actively seeking to develop the European framework for restructuring and bankruptcy management. Keywords: corruption, bankruptcy, public governance, European Union, Republic of Moldova.