The effect of corruption on economic growth: The sample of Black Sea Economic Cooperation (BSEC)

Corruption is not an anomaly for not only less developed and undeveloped countries but also considered an issue for developed countries too. In this context, the impact of corruption on economic growth has been the subject of many studies and has been a issue that countries attach importance to. The study was conducted to investigate the effect of corruption on economic growth. The definition, causes, types, measurement methods and levels of corruption is covered in the first chapter and general information about corruption is given in the same section. In the second chapter, the effects of corruption on economy and society are examined and it is stated how these factors can be affected. In chapter two also examined what are the corruption transmissions channels and how these transmission channels are processing. In the third and last chapter, includes literature and analysis. As a result of analysis it was found that corruption has an influence on economic growth directly and this effect is negative. On the other hand, the effect of corruption on economic growth through corruption transmission channels, that are invenstments and human capital, which is the basis of the study, is analysed and found that, human capital has no significant corelation with corruption. However, investment channel has been determined as corruption transmission channel. Keywords: Corruption, Economic Growth, Corrupton Transmission Channel, BSEC, Panel Data