ECONOMIC COSTS OF CORRUPTION - THEORETICAL AND EMPIRICAL ASPECTS

Abstract

Corruption is a complex economic and social phenomenon that negatively affects economic growth, institutions, foreign investments and the business environment. This analysis includes empirical and theoretical research from the last five years (2019–2024), focusing on the transmission channels through which corruption operates and the effects it produces. Empirical studies (IMF, World Bank, Transparency International) show that corruption reduces GDP by 1-2% per year, increases business costs by 30% and reduces the inflow of foreign investments. Institutional weakness and legal uncertainty further aggravate the economic consequences of corruption. Theoretical research (Kaufmann & Vicente, Rose-Ackerman & Palifka, Wei & Javorcik) confirms that weak institutions and high regulatory uncertainty are key factors in the spread of corruption. Digitization and transparency have been identified as key strategies in the fight against corruption, but their effectiveness depends on political will. The conclusion is that the systemic anti-corruption reform, along with the strengthening of the judiciary and digitalization of public services, can significantly reduce the negative consequences of corruption and promote economic development. Further research should focus on the long-term effects of reforms and new methods of measuring corruption.