Efficiency and Corruption in Local Counties: Evidence from Romania

  • Ionel Bostan “Stefan cel Mare” University, Doctoral School of Economics
  • Mihaela Onofrei Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration
  • Cristian Popescu Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration
  • Dan Lupu Alexandru Ioan Cuza, University of Iasi, Faculty of Economics and Business Administration
  • Bogdan Firtescu Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration
Keywords: local municipalities, efficiency, corruption, DEA, Romania


The current financial crisis and the lack of resources made imperative the analysis of the efficiency for managing public money, both at the central and at the local level. The general objective of the research is constituted by the estimate of the technical efficiency of all counties in Romania, as well as the analysis of its implications in local development. The originality and novelty of the study are supported by the research of a subject that has in the center the efficiency of the public authorities, current research direction for the public sector, in view of achieving a complex study. In order to reach the objective proposed, we will perform calculations on the basis of the Data Envelopment Analysis mathematical model and of the Tobit non-linear econometric model. At the same time, we reach the conclusion that in Romania, as in other states, there is a causality link between the efficiency of the local authorities and the level of corruption.


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