Is there a relation between corruption and ease of doing business?

Ramroop K. Sharma

International Journal of Business and Globalisation, 2025, vol. 40, issue 4, 358-384

Abstract: Corruption is a global phenomenon. It is worth investigating whether corruption (Corruption Perception Index: CPI) and ease of doing business (EODB) are correlated and their causality. Results show a high degree of correlation between CPI and EODB ranks and scores considering the database of CPI (Transparency International) and the EODB (World Bank) for 180 countries for the year 2019. Findings imply that a decrease in corruption improves the EODB and there is unidirectional causality between CPI and EODB ranks. The paper contributes to corruption and EODB literature by examining the correlation and causality between CPI and the EODB, a subject not recently examined. The economies must devise suitable policies to abate corruption and promote EODB for business competitiveness and sustainability, to promote investments for skills, start-ups, and innovations, and to support the extant business environment as well as to protect the interests of stakeholders, particularly in emerging nations.

Keywords: Corruption Perception Index; CPI; ease of doing business; EODB; investments; emerging nations; Granger causality. (search for similar items in EconPapers)
Date: 2025
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