Beverlee B. Anderson, California State University, USA
Purpose: The purpose of this paper is to explore the relationships that are thought to exist between the corruption within a country and selected components that contribute to a country’s sustainable economic development across regions of the world.
Design/methodology/approach: Using data from the World Bank on various aspects of development and data from Transparency International on perceptions of types and levels of corruption, a series of statistical models were developed to examine relationships among corruption in its various forms and dimensions of economic development.
Research limitations: The research is limited by the availability of data from the two sources over the time-frame examined.
Findings: The findings are mixed, showing that some types of corruption have greater negative impact on specific aspects of economic development; however, it appears that the effect may be moderated by other country factors.
Originality/value: The study uses secondary data, which are judged to be the most valid and reliable, and examines a variety of relationships. Practical implications: The impact of corruption on economic development may be moderated by cultural and “other” factors.
Keywords: Corruption levels and Economic Development, FDI, GDP growth and Capital Formation