The Relationship between Corruption and Economic Development
Summary :
Table of Contents
- Introduction
- A regression model
- Major criticism of regression analysis
- Sources
- Extra credit
Abstract
Through the quantitative comparison of corruption and economic development, it can be found that GDP per Capita is partially dependent on the amount of corruption within the governing body of a given nation. The independent variable (x) is the corruption Perceptions Index (CPI) as made available by the Transparency International (TI) website. The CPI ranks a country according to the degree by which corruption exists in the public sector. TI defines corruption as the abuse of public office for private gain. Additionally, "the surveys used in compiling the CPI ask questions that relate to the misuse of public power for private benefit." It is a reliable measurement tool and has been used as the basis for several scholarly works and studies.1 Variable (y), GDP per Capita (converted to US Dollars and not adjusted for the purchasing power parity), is a useful indicator of average living standards and is used by the United Nations and the World Bank to extensively compare the average living standards in various countries.2
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