IJSRP, Volume 2, Issue 8, August 2012 Edition [ISSN 2250-3153]
Triumph O. Oni, Olushina Olawale Awe
In recent years, corruption has become a notable issue in many countries of the world especially in developing countries where it has serious consequences. In this paper, we research on the effect of corruption on the output growth of various countries using the classical multiple linear regression model. In all analyses, we find that corruption plays a massive role in economic growth and development and it is notably negative; as the regression analysis shows that as an economy increases on the scale of index, the more increase we experience in the GDPca and other economic growth determinants such as investment, because investments (FDI) is positively correlated with cleaner economies such as Denmark, New Zealand, Finland, United States, et al. In contrast, countries with low CPIs experience impediments in their relative economic growth and development as factors such as investment is likely to decline in such countries, these countries include: Afghanistan, Somalia, Nigeria, Ghana, Mali, et al.