The Impact of Corruption on GDP Per Capita

Abstract

The paper studies the impact of corruption on the GDP per capita. A panel data covers the period between 2003 and 2011. The objective is to test the hypothesis that there is a strong negative impact of corruption on the GDP per capita. Three tests were conducted, the pool OLS, The Fixed Effect and the Random effect estimations. The main result of this study is that all three tests had shown strong statistically significant negative impact of corruption on the GDP per capita.

Keywords

• economic development