The impact of corruption on international competitiveness

Corruption is a very big problem that is facing the word today. It causes poverty and hinders development in the world. On the other hand international competitiveness must be developed to be able to compete in the world market. This paper studied the impact of corruption on international competitiveness per income level. Also, this paper aimed the effects of corruption on international competitiveness an OLS regression analysis and a standardized regression analysis has been used. Some of the variables that were included are the Corruption Perception Index, the Global Competitiveness Index and dummy variables on income classifications as defined by the World Bank. The empirical results showed that corruption hinders competitiveness, and that based effect on competitiveness excluding the dummy variables. The results also showed that the income levels of countries have a significant effect on their competitiveness and that corruption affects each level differently. Transparency and judicial policies are some of the policies presented to control the problem of corruption. Corruption having the biggest effect on competitiveness needs to be controlled and if possible eradicated