Corruption Perception Index (CPI), as an Index of Economic Growth for European Countries

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.

The Role of Economic Freedom in Interpreting Corruption Perception

“…During the last decade, the interest in examining the relationship between corruption perception and some other determinants that has an impact on economic growth such as economic freedom, foreign direct investment, social progress index, and doing business opportunity increases. In the literature, many researchers are studied on making a connection between corruption perception and other factors thought to have an impact on corruption (Carden & Verdon, 2010;Huang, 2016;Qaiser, Nadeem, Siddiqi & Siddiqui, 2017;Christos et al, 2018;Fazira & Cahyadin, 2018).…”

Effect of political corruption on municipal tax revenues

“…In this line, Alcaide & Larrú ( 2007) find a significant relationship between the Corruption Perception Index and the Gini Index. Christos et al (2018) demonstrate that there is a positive linear relationship between the growth rate of GDP per capita and the reduction of levels of corruption in all European countries, so reducing the level of corruption in one country will lead to a significant increase in that country's GDP and wealth. The impact of corruption on government accounts is another aspect that has been studied extensively in the literature.…”

“…An increasing number of studies are addressing the topic of corruption. Many have analyzed its effects on economic development (Mauro, 1995;Dreher & Herzfeld, 2005;Salinas & Salinas, 2007;Xu & Yano, 2017;Apergis & Apergis, 2017;Christos et al, 2018). Others have shown how it negatively influences the development of democracy and the rule of law (Warren, 2004;Villoria, 2007).…”

The impacts of corruption on forest loss: A review of cross‐national trends

“…Table 1 below compiles the most commonly used cross‐national measures of corruption including the World Governance Indicators (WGI) measure of control of corruption, Transparency International's Corruption Perception Index (CPI), the Political Risk Services/International Country Risk Guide (ICRG) database, and the Business Intelligence (BI) Corruption Index (Barrett et al., 2006; Christos et al., 2018; Sundström, 2016). These measures generally include data for over 180 countries since at least 2000.…”