Nikita Moiseev|Alexey Mikhaylov|Igor Varyash|Abdul Saqib
Investigating the relation of GDP per capita and corruption index
Plekhanov Russian University of Economics|Financial University|Financial Research Institute of the Ministry of Finance of the Russian Federation|Universiti Sains Malaysia
paper devoted modelling corruption perception index panel data frameworkas corruption index bounded traditional econometric multiple regression produce bad quality modelin order correct propose mathematical framework modelling bounded variables implementing logistic functionit shown corruption best explained gdp per capita major macroeconomic indicators cannot add statistically significant improvement models accuracythus assume society wealthiness facilitates reduction corruption actsindeed individual lives society experiences almost shortage resources whatever kind less interested person getting wealthier applying corruption schemesthese methods rather popular less wealthy countries temptation engage corruption higher since drastically increase individuals utility functiontherefore research assert growth wealth society makes corruption recede way around reducing corruption helps increase gdp per capitahowever counterintuitive finding research fact gdp per capita adjusted purchasing power parity produces model worse quality using plain gdp per capitathis fact tentatively explained flaws methodology calculating adjustments since basket goods varies drastically across countries