GDP Per Capita, Economic Freedom Index, Political Culture and Freedom of the Press Index as Determinants of Corruption Perception Index: A Global Study

Abstract

Transparency International publishes annually the Corruption Perception Index (CPI) by ranking countries on their perceived levels of corruption as determined by expert assessments and opinion surveys. Corruption is the misuse of public power for private benefit. The study aimed to find the determinants of CPI. The descriptive inferential design was used involving 146 countries with complete data sets through data mining methodology. The Cluster Analysis, Pearson r, multiple linear regression analysis, stepwise regression model were used. The results showed that Gross Domestic Product per Capita, Economic Freedom Index, Political Culture, and Freedom of the Press Index emerged as the determinants of Corruption Perception Index. The study concludes that the four determinants explain 87 percent of the variation for CPI. Least Developed Countries and Developing Countries had the greatest vulnerability to corruption. In contrast, Developed Countries had lower corruption.

The Relation of Corruption Perceptions, Conformity and Traditionalism: Macroeconomic Study of 52 Countries

“…The first finding supports the previous numerous findings on the relation between GDP and corruption perceptions (see Japos, and Estrada, 2014;Okada and Samreth, 2012;Elbahnasawy, 2014;Iwasaki and Suzuki, 2012). This relation was well studied in the literature and most of the authors support the positive sign.…”

“…While the relationship of CPI and GDP is well researched in the literature (see Japos, and Estrada, 2014;Okada and Samreth, 2012;Elbahnasawy, 2014;Iwasaki and Suzuki, 2012;or Sanderson and Strielkowski, 2013;or Strielkowski and ábelková, 2014) and the results are consistent (all the researchers report positive statistically significant association), the results on CPI and GDP growth exhibit certain controversy. Though some authors report positive relation between GDP growth and corruption (see Braun and Di Tella, 2004;Frechette, 2006;Berdiev et al, 2013), the results if this study support negative statistically significant association of CPI and GDP growth.…”