Abstract
Corruption is a political, economic, cultural and moral problem and it is considered as a universal phenomenon that exists in all developed and developing countries, in public and private sectors, as well as in non-profit and charity organizations. The aim of this study is to investigate the phenomenon of corruption in relation to the economic development and growth in European countries in general and specifically in the European Economic Area, the European Union, the Euro-zone and the non-European Union countries in Central and Eastern Europe, including Turkey. Our objective is specifically the examination of the relationship between corruption and per capita GDP, and between changes in corruption and per capita GDP growth rate. The survey shows that there is a strong inverse relationship between the level of corruption and the per capita GDP of almost all European countries, with the exception the non-European Union countries in the Central and Eastern Europe, including Turkey. Additionally, there is a positive linear relationship between the per capita GDP growth rate and the reduction in corruption levels for all categories of European countries.
Highlights
Measuring Corruption PerceptionThe corruption perception is based on subjective experiences of individuals or groups
The results showed that the improvement in the corruption index of a country by a single unit causes an increase of more than 4% in the rate of investment and an increase of more than 0.5% in the per capita GDP growth rate
Concerning the relation between the average per capita GDP growth rate (g), and the change in the average corruption perception index [Δ(CPI)], as it is shown in Figure 2 and Table 1, there is a positive linear relationship between the average per capita GDP growth rate and the change in the level of corruption, for all European countries, expressed by the slope of a straight line (m) which is 0.0186
Summary
The corruption perception is based on subjective experiences of individuals or groups. Akçay [4] studied the effect of corruption on growth for 54 developing and developed countries for the time period 1960-1995, using the equation of Mauro (Equation (6)) with a group of eight (X) variables (increase of population, inflation, general government expenditure as a percentage of GDP, ratio of students to teachers, ratio of gross domestic investment to GDP, etc.), and the corruption index ICRG. Vlachos [11] studying the relevant scatter diagram for 172 countries, found that the apparent linear relationship on a log-log scale provided exponent values (μ) of Equation (8), equal to 0.21 for the period of time 1993-2012 He found that for low income countries there is no positive exponential relationship between CPI and the average per capita GDP (y).
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