Public Procurement Practices, Corruption Perception, and Service Delivery in the EU: An Empirical Analysis of Financial Accountability and Predictive Roles
DOI:
https://doi.org/10.60154/jaepp.2025.v26n2p82Keywords:
Audit Oversight, Financial Accountability, Public Procurement Practices, Corruption Perception, Service DeliveryAbstract
The study examined the predictive role of public procurement practices, corruption perception, and service delivery in the EU. A descriptive research design was utilised to collect cross-country data for 27 EU member states. Both descriptive and inferential statistics were deployed using SPSS (version 23.0). The findings indicated that the mean scores for public procurement practices (PPP = 60.26), corruption perception (CPI = 43.00), and service delivery (RQI = 58.14) were significantly higher than the global averages. Statistical tests confirmed these differences: PPP, t(26) = 5.74, p < .001; CPI, t(26) = 6.98, p < .001; and service delivery, t(26) = 4.97, p < .001. Further, regression analysis revealed that changes in PPP and CPI combined could explain 75% (R² = .75) of the variation in service delivery. The study supported the Counterfactual Theory of Causation, as articulated in the CPC service delivery model, which establishes a direct link between corruption perception and service delivery. The study argued that persistent corruption will continue to fuel fraudulent procurement practices, ultimately compromising service delivery. This pattern is observed in some EU member states, including Bulgaria, Croatia, and Romania, due to many predictors such as weak AOI and FAM.
References
1. Aydin, M., Sogut, Y., & Erdem, A. (2024). The role of environmental technologies, institutional quality, and globalization on environmental sustainability in European Union countries: new evidence from advanced panel data estimations. Environmental Science and Pollution Research, 31(7), 10460-10472.
2. Axtell, R. L., & Farmer, J. D. (2022). Agent-based modeling in economics and finance: Past, present, and future. Journal of Economic Literature.
3. Baljija, S. K., & Min, K. S. (2023). Evaluating the effectiveness of whistleblower protection: A new index. Data & Policy, 5, e28.
4. Balzer, B., Rosato, A., & von Wangenheim, J. (2022). Dutch vs. first-price auctions with expectations-based loss-averse bidders. Journal of Economic Theory, 205, 105545.
5. Bellacosa, M., & De Bellis, M. (2023). The protection of the EU financial interests between administrative and criminal tools: OLAF and EPPO. Common Market Law Review, 60(1).
6. Blanchard, O., Leandro, A., & Zettelmeyer, J. (2021). Redesigning EU fiscal rules: From rules to standards. Economic Policy, 36(106), 195-236.
7. Blanke, H. J., & Mangiameli, S. (2013). The Treaty on European Union (TEU). A commentary. Retrieved on 10/01/2024 from https://link.springer.com/content/pdf/10.1007/978-3-642-31706-4.pdf
8. Bovis, C. (2012). EU public procurement law. Edward Elgar Publishing. Retrieved on 10/01/2024 From https://books.google.com/books?hl=en&lr=&id=uw5Q6NZ4-nQC&oi=fnd&pg=PR1&dq=The+EU+public+procurement+directives+is+dated+back+to+the+1970s+while+directives+were+significantly+ignored+early+in+practice&ots=x81ixr-mQt&sig=oSlxDRVjMOyVhtKSXNTddCnxsvw
9. De Mars, S. (2011). The influence of recent developments in EU procurement law on the procurement regulation of member states: a case study of the UK, the Netherlands and France (Doctoral dissertation, University of Nottingham).
10. Dikmen, S., & Çiçek, H. G. (2023). Fighting against corruption and bribery in public procurements during the Covid-19 pandemic. In The Ethics of Bribery: Theoretical and Empirical Studies (pp. 309-328). Cham: Springer International Publishing.
11. Domínguez Olivera, R. (2015). Modification of Public Contracts Transposition and Interpretation of the new EU Directives. European Procurement & Public Private Partnership Law Review, 10(1).
12. Epstude, K., & Roese, N. J. (2008). The functional theory of counterfactual thinking. Personality and social psychology review, 12(2), 168-192.
13. European Commission (2017). Public procurement indicators. Retrieved on 31/12/2023 from https://policy.trade.ec.europa.eu/help-exporters-and-importers/accessing-markets/public-procurement_en#:~:text=Public%20procurement%20affects%20a%20substantial,public%20procurement%20indicators%2C%202017).
14. European Commission (2022). Migration and Home Affairs; Citizens and businesses have spoken corruption remains a serious problem in EU countries. Retrieved on 29/12/2023 from https://home-affairs.ec.europa.eu/news/citizens-and-businesses-have-spoken-corruption-remains-serious-problem-eu-countries-2022-07-13_en
15. Flynn, A., & Davis, P. (2014). Theory in public procurement research. Journal of public procurement, 14(2), 139-180.
16. Fazekas, M., & Blum, J. R. (2021). Improving public procurement outcomes. Policy research working paper, 2(4), 2-3.
17. Goeree, J. K., & Offerman, T. (2003). Competitive bidding in auctions with private and common values. The Economic Journal, 113(489), 598-613.
18. Henne, P., Kulesza, A., Perez, K., & Houcek, A. (2021). Counterfactual thinking and recency effects in causal judgment. Cognition, 212, 104708.
19. Hitchcock, C. (1997). Probabilistic causation. Retrieved on 10/01/2024 from https://seop.illc.uva.nl/entries/causation-probabilistic/
20. Iñaki A.A, & Marie C., (2017). Transparency international, Topic Guide: Corruption in Service Delivery. Retrieved on 4/01/2024 from https://knowledgehub.transparency.org/guide/topic-guide-on-corruption-in-service-delivery/4471
21. Kayode, A., Adagba, S. O., & Anyio, S. F. (2013). Corruption and service delivery: the case of Nigerian public service. Wudpecker Journal of Public Administration, 1(1), 001-006.
22. Łacny, J. (2021). The rule of law conditionality under regulation No 2092/2020, is it all about the money?. Hague Journal on the Rule of Law, 13, 79-105.
23. Martinić, S., & Kozina, A. (2016). ‘Europe 2020’and the EU Public Procurement and State Aid Rules: Good Intentions That Pave a Road to Hell?. Croatian Yearbook of European Law & Policy, 12(1), 207-249.
24. Mbate, M. (2018). Who bears the burden of bribery? Evidence from public service delivery in Kenya. Development Policy Review, 36, O321-O340.
25. Menzies, P., & Beebee, H. (2001). Counterfactual theories of causation. Retrieved on 10/01/2024 from https://plato.stanford.edu/entries/causation-counterfactual/?fbclid=IwAR1UxkMDkXKvU61ZkP312jlR0K27pYPFIba3EIfvg3-e-FG9prZjQcLidJ0
26. Milgrom, P. R., & Weber, R. J. (1982). A theory of auctions and competitive bidding. Econometrica: Journal of the Econometric Society, 1089-1122.
27. Milgrom, P. R., & Weber, R. J. (2000). A Theory of Auctions and Competitive Bidding'. INTERNATIONAL LIBRARY OF CRITICAL WRITINGS IN ECONOMICS, 113, 179-194.
28. Mineva, D., Kostova, T., Fazekas, M., & Poltoratskaia, V. (2023). Bridges to nowhere: state capture and corruption risks in fiscal transfers and public procurement at the local level in Southeast Europe. In Bridges to nowhere: state capture and corruption risks in fiscal transfers and public procurement at the local level in Southeast Europe: Mineva, Daniela| uKostova, Tihomira| uFazekas, Mihály| uPoltoratskaia, Viktoriia. Sofia: Center for the Study of Democracy.
29. Mineva, D., Vladimirov, M., Rangelova, K., Fazekas, M., Horn, P., & Tóth, B. (2022). Public procurement integrity in Southeast Europe: mechanisms, red flags, and state-owned enterprises in the energy sector. In Public procurement integrity in Southeast Europe: mechanisms, red flags, and state-owned enterprises in the energy sector: Mineva, Daniela| uVladimirov, Martin| uRangelova, Kostantsa| uFazekas, Mihály| uHorn, Péter| uTóth, Bence. Sofia: Center for the Study of Democracy
30. Modlin S. (2024). The Association Between Local Government Organization Structure and Internal Controls: The Case of North Carolina Counties. Journal of Accounting, Ethics & Public Policy, JAEPP, 25 (2), 71. https://doi.org/10.60154/jaepp.2024.v25n1p71
31. Moldogaziev, T. T., & Liu, C. (2021). Public sector corruption and perceived government performance in transition. Governance, 34(2), 475-504.
32. Moosa, I. A. (2023). Western Exceptionalism: The Rule of Law, Judicial Independence and Transparency. In The West Versus the Rest and The Myth of Western Exceptionalism (pp. 91-130). Cham: Springer International Publishing.
33. Mutascu, M. (2024). European Union funds and corruption in the ex-communist member states. Journal of Contemporary European Studies, 32(2), 555-574.
34. Naher, N., Hoque, R., Hassan, M. S., Balabanova, D., Adams, A. M., & Ahmed, S. M. (2020). The influence of corruption and governance in the delivery of frontline health care services in the public sector: A scoping review of current and future prospects in low and middle-income countries of south and south-east Asia. BMC public health, 20, 1-16.
35. Nogues Comas, A. A., & Mendes Dos Santos, N. F. (2021). Measuring Public Procurement Rules and Practices. Retrieved on 27/12/2023 from https://documents.worldbank.org/curated/en/674361620322938074/pdf/Measuring-Public-Procurement-Rules-and-Practices-Benchmarking-a-Recurrent-Infrastructure-Contract.pdf
36. Noordhof, P. (1999). Probabilistic causation, preemption and counterfactuals. Mind, 108(429), 95-125.
37. Official Journal of the European Union (2014). Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing
38. Directive 2004/18/EC (Text with EEA relevance) Retrieved on 31/12/23 from https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014L0024.
39. Open Contracting Partnership (2020). How governments spend: Opening up the value of global public procurement. Retrieved on 31/12/2023 from https://www.open-contracting.org/wp-content/uploads/2020/08/OCP2020-Global-Public-Procurement-Spend.pdf
40. Omelchuk, O. M., Haiur, I. Y., Kozytska, O. G., Prysiazhna, A. V., & Khmelevska, N. V. (2022). Analysis of the activities of law enforcement authorities in the field of combating crime and corruption offences. Journal of Money Laundering Control, 25(3), 700-716.
41. Paraskeva, S., & Tsoulfas, G. T. (2025). Mitigating risks in public procurement. Journal of Public Procurement.
42. Persson, A., Worth, M., & Jeney, P. (2024). High-risk areas of corruption in the EU: A mapping and in-depth analysis.
43. Prier, E., McCue, C., & Boykin, E. A. (2021). Assessing European Union standardization: a descriptive analysis of voluntary ex ante transparency notices. Journal of Public Procurement, 21(1), 1-18.
44. Razeto-Barry, P., & Frick, R. (2011). Probabilistic causation and the explanatory role of natural selection. Studies in History and Philosophy of Science Part C: Studies in History and Philosophy of Biological and Biomedical Sciences, 42(3), 344-355.
45. Reutlinger, A. (2018). Extending the counterfactual theory of explanation. Explanation beyond causation: Philosophical perspectives on non-causal explanations, 74-95.
46. Rips, L. J. (2010). Two causal theories of counterfactual conditionals. Cognitive science, 34(2), 175-221.
47. Rhode, A. (2019). Public Procurement in the European Union. Springer Fachmedien Wiesbaden.
48. Rohlfing, I., & Zuber, C. I. (2021). Check your truth conditions! Clarifying the relationship between theories of causation and social science methods for causal inference. Sociological Methods & Research, 50(4), 1623-1659.
49. Sargiacomo, M., Everett, J., Ianni, L., & D'Andreamatteo, A. (2024). Auditing for fraud and corruption: A public-interest-based definition and analysis. The British Accounting Review, 56(2), 101355.
50. Skenjana, N., Ngamlana, N., Mabhula, T., Mgwebi, G., Sokupa, T., & Kimemia, P. (2019). Understanding The Impact Of Corruption On Service Delivery In Local Government. Retrieved on 4/1/2024 from https://www.ggln.org.za/media/k2/attachments/SoLG.2010-Afesis-corplan.pdf
51. The GlobalEconomy.com. Retrieved on 5/01/2024 from https://www.theglobaleconomy.com/rankings/roads_quality/
52. The World Bank (IBRD.IDA) Doing Business Archive; Contracting with the Government Data. Retrieved 13/12/2023 from https://archive.doingbusiness.org/en/data/exploretopics/contracting-with-the-government
53. Transparency International, Corruption Perception Index. Retrieved on 5/01/2024 from https://www.transparency.org/en/cpi/2022?gclid=CjwKCAiA7t6sBhAiEiwAsaieYk7kfh2q323ZEgTBS3RCzEjoYjz9ZdoOA92XWzF0wuq5w16MAsL18hoCNt8QAvD_BwE&gad_source=1
54. World Economic Form. Retrieved on 5/01/2024 from https://www3.weforum.org/docs/TTCR/2013/TTCR_DataTables7_2013.pdf
55. World population Review. Retrieved on 5/01/2024 from https://worldpopulationreview.com/country-rankings/road-quality-by-country.
56. Zhou J. & McGee W.R. (2024). Professional Autonomy, Professional Confidence, And IFRS Harmonization: Evidence from the World Values Surveys. Journal of Accounting, Ethics & Public Policy, JAEPP, 25 (2), 238. https://doi.org/10.60154/jaepp.2024.v25n2p238
57. Modlin S. (2024). The Association Between Local Government Organization Structure and Internal Controls: The Case of North Carolina Counties. Journal of Accounting, Ethics & Public Policy, JAEPP, 25 (2), 71. https://doi.org/10.60154/jaepp.2024.v25n1p71
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Hayatullah Boladale Hassan

This work is licensed under a Creative Commons Attribution 4.0 International License.