The vice chancellor of the University of the South Pacific says high government expenditure and reduced revenue in Fiji are the result of corruption.
Savenaca Siwatibau has told a conference that corruption arises from government regulations such as the granting of business licences and protection through tariffs.
Other sources of corruption are the granting of business licences, price control and the allocation of foreign exchange to applicants.
Mr Siwatibau says studies in developing countries show that subsidies such as assistance are hijacked by those who are relatively well off, know how to work the system and are politically well connected.
He says cash given in corruption inflates initial business costs which are then passed on to the consumer.