Corruption Perceptions Index - Relation To GDP Growth and Foreign Investment

Relation To GDP Growth and Foreign Investment

Research papers published in 2007 and 2008 examined the economic consequences of corruption perception, as defined by the CPI. The researchers found a correlation between a higher CPI and lower long-term economic growth, as well as a decrease in GDP growth of 1.7% for every unit increase in a country's CPI score. Also shown was a power-law dependence linking higher CPI score to lower rates of foreign investment in a country.

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