Оценка влияния коррупции на экономический рост и устойчивое развитие в странах G20 / Assessment of the impact of corruption on economic growth and sustainable development in G20 countries

Аннотация

In the modern world, corruption takes place in any society and any state. There are practically no countries that could deny its existence. Moreover, the specifics of the current stage of its state is an obviously strong international character. This is determined by a number of factors, the most important of which is globalization, which determines the economic transparency of national borders, the free movement of capital, labor goods, etc., as well as the criminalization of national economies. The effect of corruption has become a point of concern not only for politicians, governmental regulators and other representatives from other structures, who are supposed to combat the appearance of acts of corruption and regulate processes of policy-making, but most importantly for the society - for welfare of all the people, who live in the world and are directly or indirectly affected by declines in income, poor development of medical and educational facilities, unfairness of judicial system and inability of having access to vital goods and services. Given the importance of the topic of corruption and its impact on development of socio-economic institutions and socio-economic welfare, in my research I estimate the effect that corruption imposes on economic growth and sustainable development. To reflect the measurement of corruption, I used the Control of Corruption Index for countries of G20, utilizing yearly data range from 2011 to 2020. The information base of the study is represented by official statistics primarily from the World Bank’s Data Bank platform. By applying a GLS Random Effects model with first-order autoregressive disturbances, I demonstrate that corruption has an adverse effect on sustainable economic development, proving the “sand the wheels” hypothesis. The results demonstrate that lower corruption levels in a country result in increased GDP per capita. Political regime of a country has a moderative effect on economic growth, combined with corruption, suggesting that more authoritarian countries have a lower degree of economic development. Obtained results serve as the basis for practical recommendations to government and policy regulators.