The relationship between corruption and economic growth

Jurayev Jo‘rabek, Mamatova Sarvinoz, Abdullayeva Aziza and Maha Ibrahim

GREEN ECONOMY AND DEVELOPMENT, 2025, vol. 3

Abstract: This study investigates the impact of corruption on economic growth by analyzing cross-sectional data from150 countries for the year 2022. Using the Ordinary Least Squares (OLS) regression method, the study evaluates therelationship between GDP per capita and key variables such as the Corruption Perceptions Index (CPI), foreign directinvestment (FDI), inflation, and population growth. The results support the "sand the wheels" hypothesis, indicating thatcorruption significantly impedes economic performance. The research highlights that higher CPI scores representinglower corruption are positively associated with economic growth. The findings emphasize the importance of transparentgovernance and anti-corruption measures in promoting sustainable development

Keywords: corruption; economic growth; CPI; FDI; inflation; OLS; governance; sustainability (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:teu:ged000:v:3:y:2025:id:5891

DOI: 10.5281/zenodo.15705099

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