The Impact of Corruption on Economic Development

A special issue of Economies (ISSN 2227-7099).

Deadline for manuscript submissions: closed (31 August 2025) | Viewed by 2229

Special Issue Editors


E-Mail Website
Guest Editor
Independent Researcher, Sydney, NSW 2000, Australia
Interests: aged care; business ethics; corporate governance; corruption; economic sociology; institutions

E-Mail Website
Guest Editor
Independent Researcher, Sydney, NSW 2000, Australia
Interests: corporate governance, corruption, innovation, public administration and sustainability

Special Issue Information

Dear Colleagues,

Corruption has a systemic, deleterious effect on societies, governments and countries around the world. Corruption’s presence indicates the ills of societies and economies; it impacts the development of the public sector, private sector and social sector in a country and destroys the public trust of citizens in their governments and ruling elites. Corruption’s ubiquity denotes that the existing institutional frameworks are unable to deal with its costs, and engagement with corrupt conduct reifies the inefficiencies within the system. The IMF estimates the average cost of corruption is 5% of global GDP annually or over USD 1 trilllion per year.1

The UN Convention Against Corruption (UNCAC) is the main international instrument addressing corruption on the multilateral level and has been ratified by over 190 countries.2 The UNCAC seeks to address all forms of corruption from petty administrative bribery, to grey forms of lobbying, donations and post-public office employment, and finally to grand, systemic corruption with state capture which destroys countries, economies and societies, creating intergenerational trauma and diasporas.

In this Special Issue, we are seeking contributions that research the existing problems of corruption on economic development and suggestions to remedy the challenges so that healthy societies may develop in an increasingly polarised world. Climate change pressures also constrain the finite resources of our world, and the mitigation of corruption’s inefficiencies is necessary in order for humanity to survive.3 Each contributing paper is expected to refer to the UNCAC and nominate 2030 UN Sustainable Development Goals (SDGs) (see below).

Call for Papers

We welcome papers that can cover both developed (high GDP per capita) and developing countries (lower GDP per capita); 4 the former have just as many corruption issues covered in UNCACSu as the latter. The socioeconomic transition of middle and emerging countries and their corruption pressures would also be of interest, as would be successful anti-corruption programs and approaches to address systemic failures.

Corruption takes many different forms, but common indicators include the loss of public trust and conflicts of interest that create economic inefficiencies, higher income inequality and distorted productivity.

To that end, we seek contributions that address any of the following topics of corruption and economic development—notwithstanding nor limited to that area of interest—within the scope of this Special Issue:

  • Accountability—public and private;
  • Activism—civil society, institutional, investor, NGO, and shareholder;
  • Aid programs and emergency response and recovery programs;
  • Anti-corruption strategies such as costs, methods, options, skills, tools and toolkits, etc.;
  • Banking and finance—extent of bank fraud; loan sharking; gambling, scamming; and organised crime;
  • Behaviour and leadership;
  • Bribery—administrative, petty and grand forms of bribery;
  • Bureaucracy—administrative hurdles; appointment processes; behaviour; costs of; efficiencies and inefficiencies; independence; layers of; opportunistic conduct of; remuneration tenure;
  • Cartels;
  • Capture—economic, regulatory, and state;
  • Civil society: impact of and impact to civil society;
  • Climate change;
  • Contracts—COVID-19, tenders, and bidding process (unfair and prejudicial);
  • Corporate governance—role of corporations;
  • Country case studies;
  • Data on corruption such as their availability (intra- and intercountry), different rankings, and trends;
  • Democracy—undermining and weakening.;
  • Development assistance;
  • Diasporas and exiles;
  • Donations—political and campaign finance;
  • Economic growth and its bilateral relationship with corruption;
  • Elections and electoral systems—cycles, voting and interference;
  • Elites—well connected and politically active and their relationships between public and private;
  • Environmental damage, degradation and exploitation;
  • Export controls and trade embargoes—effectiveness of; impact of and defence;
  • Culture, ethics, norms and values;
  • Deforestation and natural resource exploitation;
  • Disaster—natural and human and responses to;
  • Education—levels of; public funding of; and religions;
  • Fourth estate—independence; journalism; and media;
  • GICS sector-specific aged care, construction, defence, education, energy and extractive, finance, gambling, healthcare, pharmaceuticals, tobacco, technology, timber and logging, transportation, etc.;
  • Governance—public national and transnational;
  • Governments—national, regional, provincial, state, and local;
  • Human rights—exploitation, weakening, and gender equality;
  • Incentives and disincentives;
  • Indigenous peoples—abuse of human rights; dislocation; dispossession and landgrabs; impact on; lack of effective consultation processes, veto or other controls inter alia;
  • Information—transparency and access to; bilateral relationship between corruption and freedom of the press, freedom of information; secrecy provisions; and whistleblower support;
  • Integrity;
  • Investment impact of corruption such as foreign direct investment (FDI), FDI regulations, investment climate variables, investment investments and disincentives;
  • Labour—child; enslavement; and working condition;
  • Infrastructure;
  • Institutions—role of public; politicisation; and strengths and weaknesses;
  • International cooperation;
  • Judicial independence and reform;
  • Labour rights;
  • Laws and legislation—effectiveness and enforcement of existing anti-corruption laws and rule of law vs. rule of the jungle;
  • Law enforcement agencies—“Quis custodiet ipsos custodes?” role of police vis both being corrupted and guarding against;
  • Lobbying—codes of conduct; controls, definition; diaries, registers; sanctions, scope; etc.;
  • Models of principal–agent and demand–supply;
  • Money laundering, tax evasion and transfer pricing;
  • Motivations;
  • Multilateral organisations and treaties;
  • NGOs;
  • Oligarchy, oligopoly, ownership concentration and monopsony across industrial sectors;
  • Political systems, stakeholders and polity;
  • Politicisation and depoliticisation;
  • Pollution and emissions regulations and controls;
  • Power;
  • Poverty;
  • Private sector and private sector development;
  • Privatisation;
  • Public administration theories;
  • Public bodies—anti-corruption agencies, consumer protections, government audits, and government or parliamentary scrutiny and committees;
  • Public funds—collection and disbursement;
  • Public interest;
  • Public officials—appointed and elected; ‘conflicts of interest’ provisions; transparency and accountability;
  • Public sector development;
  • Regulatory framework and regulations—arbitrage and enforcement;
  • Remedies and successful interventions and programs;
  • Resource constraints and allowances;
  • Responsibility—utilitarian and communitarian;
  • Revolving door;
  • Security—personal safety;
  • Self-interest—tension between self and community vs altruism;
  • Social media;
  • Systemic inefficiencies;
  • Technology—promise or hindrance to anti-corruption including AI;
  • Theories;
  • Transparency;
  • Trust;
  • UN Sustainable Development Goals (SDGs);
    • 1—No Poverty;
    • 2—Zero Hunger;
    • 5—Gender Equality;
    • 6—Clean Water and Sanitation;
    • 7—Affordable and Clean Energy;
    • 9—Industry, Innovation and Infrastructure;
    • 10—Reduced Inequalities;
    • 11—Sustainable Cities and Communities;
    • 12—Responsible Consumption and Production;
    • 13—Climate Action;
    • 14—Life Below Water;
    • 15—Life On Land;
    • 16—Peace, Justice and Strong Institutions;
    • 17—Partnership for the Goals;
  • UNCAC—operationalisation of the convention in a country through anti-corruption legislation and enforcement;
  • War and post-war reconstruction efforts.

We welcome initial approaches and suggestions that potential contributors may wish to address if they believe their paper is relevant to this Special Issue.

We look forward to receiving a variety of papers to provide the multi-disciplinary approach and understanding that are required on corruption.

1 https://blog-pfm.imf.org/en/pfmblog/2023/04/costing-corruption-and-efficiency-losses-from-weak-pfm-systems#:~:text=The%20model%20estimates%20that%20globally,the%20budgetary%20central%20government%20level.

2 https://www.unodc.org/corruption/en/uncac/ratification-status.html

3 https://www.taylorfrancis.com/books/oa-edit/10.4324/9781003280316/innovation-pathways-sustainability-marie-dela-rama-michael-lester?context=ubx&refId=bcf69b64-18d8-4169-aa7a-e76377868e4a

4 https://www.imf.org/external/datamapper/NGDPDPC@WEO/OEMDC/ADVEC/WEOWORLD

Dr. Marie dela Rama
Dr. Michael E. Lester
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Economies is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1800 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • civil society
  • climate change
  • corruption
  • economic development
  • governance
  • human rights
  • sectors
  • UN SDGs

Benefits of Publishing in a Special Issue

  • Ease of navigation: Grouping papers by topic helps scholars navigate broad scope journals more efficiently.
  • Greater discoverability: Special Issues support the reach and impact of scientific research. Articles in Special Issues are more discoverable and cited more frequently.
  • Expansion of research network: Special Issues facilitate connections among authors, fostering scientific collaborations.
  • External promotion: Articles in Special Issues are often promoted through the journal's social media, increasing their visibility.
  • Reprint: MDPI Books provides the opportunity to republish successful Special Issues in book format, both online and in print.

Further information on MDPI's Special Issue policies can be found here.

Published Papers (2 papers)

Order results
Result details
Select all
Export citation of selected articles as:

Research

27 pages, 852 KB  
Article
Perceptions of Corruption, Inequality, and the Fragility of Prosperity in Europe
by Gheorghița Dincă and Christian-Gabriel Strempel
Economies 2025, 13(10), 296; https://doi.org/10.3390/economies13100296 - 12 Oct 2025
Viewed by 485
Abstract
This study examines the complex relations between corruption, income inequality, and sustainable economic development within the European Union (EU) for the 2003–2023 period. Employing panel data for all 27 EU member states, as well as for the subgroups of Old (OMS) and New [...] Read more.
This study examines the complex relations between corruption, income inequality, and sustainable economic development within the European Union (EU) for the 2003–2023 period. Employing panel data for all 27 EU member states, as well as for the subgroups of Old (OMS) and New Member States (NMS), the analysis applies pooled OLS, random- and fixed-effects models, and panel-corrected standard errors (PCSE) estimations. The results indicate that higher perceived corruption is robustly associated with greater income inequality, while higher tertiary education attainment, greater social protection expenditures, and increased urbanization apparently reduce inequality. Subsample evidence reveals that institutional context conditions the strength of these relationships, with NMS exhibiting a more significant corruption–inequality nexus. These findings highlight that achieving sustainable and inclusive economic growth in the EU depends on institutional integrity and good governance. Strengthening anti-corruption frameworks, investing in human capital, and enhancing social protection are essential policy instruments for supporting the EU’s sustainable development objectives. Full article
(This article belongs to the Special Issue The Impact of Corruption on Economic Development)
Show Figures

Figure A1

21 pages, 527 KB  
Article
Corruption as a Key Driver of Informality: Cross-Country Evidence on Bribery and Institutional Weakness
by Jhon Valdiglesias
Economies 2025, 13(10), 281; https://doi.org/10.3390/economies13100281 - 28 Sep 2025
Viewed by 714
Abstract
This study investigated the impact of corruption on the persistence of informality across countries, offering new insights into the institutional dynamics that sustain informal economic activities. Drawing on firm-level data from World Bank Enterprise Surveys covering 159 countries, the analysis employed quantitative methods [...] Read more.
This study investigated the impact of corruption on the persistence of informality across countries, offering new insights into the institutional dynamics that sustain informal economic activities. Drawing on firm-level data from World Bank Enterprise Surveys covering 159 countries, the analysis employed quantitative methods in Stata to assess four indicators of informality against five exogenous variables. These variables captured key institutional constraints, including corruption (with a focus on bribery), bureaucratic inefficiencies, and infrastructure deficits. Results revealed both linear and nonlinear effects of corruption on informality, suggesting that firms embedded in corrupt environments are more likely to remain informal over time. The role of political networks as facilitators of corruption is particularly significant in developing economies, where informal firms benefit from weak enforcement and institutional loopholes. The findings underscore the structural nature of informality and highlight corruption as a critical barrier to sustainable economic development. By exposing how informal payments and institutional weakness interact, this study contributes to global efforts to promote inclusive growth and effective governance under the Sustainable Development Goals (SDGs), particularly SDG 8 and SDG 16. Full article
(This article belongs to the Special Issue The Impact of Corruption on Economic Development)
Show Figures

Figure 1

Back to TopTop