Academic Journal of Interdisciplinary Studies MCSER Publishing, Rome-Italy

In this research paper is analyzed corruption and bribery on transition economies with case study of SEE countries and the main theoretical arguments for discussions are as following: the effect of corruption in economic growth, mobilization of different countries or institutions against corruption (prevent corruption through institutional policies and anti- corruption programs), the level of corruption in SEE countries, effect of corruption in public sector and in economic efficiency. In methodology, the secondary data that used are collected from international institutions and they are calculated through STATA program. The main analyses are descriptive statistic, OLS method of regression and correlation matrix. The variables that are used in research paper are: corruption and bribery & bureaucracy costs (as dependent variable), then economic growth, political stability, economic freedom, transition reforms and education index (as independent variables). Based on empirical results, in the OLS analysis is found that corruption has positive impact on economic growth but bribery and has negative impact on economic growth of SEE countries then in T-statistic analysis all independent variables have shown negative significance (T<2) on corruption and bribery. In correlation methods, economic growth has higher negative correlation with bribery than with corruption. In conclusion, all of SEE countries must attempt to fight against corruption and it is very serious problem for economic sustainable, political stability and institutional consolidation, process of integration and in other important challenges. In fact, corruption index in 2014 shown that the most of SEE countries are ranking under 50 out 100, it means high level of corruption