Corruption perceptions in the Schengen Zone and their relation to education, economic performance, and governance

Abstract

In the quest for integrity and transparency, the perception of corruption within a state not only undermines trust in governance but also hinders sustainable progress. This study investigates the relationship between education, economic performance, and governance and their impact on the assessment of corruption in the context of sustainable development goals. The research framework included data from 14 European countries, members of the Schengen zone, using panel data for the period 2003–2022. The analysis of the sample indicators guided us to apply further advanced research methods. Principal Components Analysis was applied to reduce dimensionality. Under various assumptions related to heterogeneity, stationarity and exogeneity, panel Fixed Effects (FE) and Dynamic Panel with Generalized Method of Moments (GMM) were applied to link the drivers and the perception of corruption. The results are twofold: (i) on the one hand, the diachronic evolution of corruption, education index, economic performance or governance perceptions reveals different patterns for the countries of the Schengen zone; (ii) on the other hand, the composite index for education and governance assessment had a significant impact on corruption perceptions, while economic performance showed no apparent link to corruption. Incorporating the effects of economic and political shocks, the study will explore the resilience of the Schengen Zone’s governance against corruption, particularly by examining the effectiveness of crisis management and education’s role in reinforcing integrity. It will also conduct a longitudinal analysis to assess how these shocks influence corruption perceptions over time, offering insights into the adaptability of policy responses and their lasting impact on public trust. The findings establish new research pathways for academics and provide valuable incentives to policymakers and professional trainers to improve mechanisms for combating corruption.