Analysis of the relationship between corruption and economic growth -country examples

The concept of "corruption" emerges as one of the factors affecting economic growth in both developed and developing countries. In the last two decades, corruption has become a prominent problem in many countries, especially in developing countries where it has serious effects on the economy. The aim of this research is to analyze the relationship between the corruption perceptions and economic growth. For the purposes of the research, it has been examined whether the relationship in question differs in developed and developing countries. In this context, analyzes were made within the framework of panel data analysis using annual frequency data between 2009 and 2020 for 25 developing countries and 23 developed countries grouped within the scope of the World Bank country classification. Panel data analysis was performed separately to cover both the specified period and the pre-covid period. The gross domestic product variable used for economic growth is the dependent variable, and the corruption perception index variable, which is used as corruption, is used as the independent variable. Foreign direct investments, consumer price index taken as inflation, and foreign trade volume variables were used as explanatory variables. Democracy index and political stability index variables were considered as independent variables in an analysis that was structered as 3 different models.