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The Biased Nature of the Corruption Perception Index

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  • Abida Naurin

    (Pakistan Institute of Development Economics, Islamabad)

Abstract

Corruption is a global issue that is present in numerous countries. Its broad meaning is the misuse of public power for personal gain, which leads to a less efficient allocation of resources than would be the case in an environment free of corruption. Corruption hinders social development, investment, and economic progress in several ways. The first effect of corruption is to decrease the effectiveness of government institutions and distort the distribution of resources. Additionally, it might cause capital flight and hinder international investment. Thirdly, corruption threatens the rule of law, which is necessary for economic growth.

Suggested Citation

  • Abida Naurin, 2023. "The Biased Nature of the Corruption Perception Index," PIDE Policy View Point 2023:41, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:pviewp:2023:41
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    References listed on IDEAS

    as
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    6. Mr. Vito Tanzi & Mr. Hamid R Davoodi, 1997. "Corruption, Public Investment, and Growth," IMF Working Papers 1997/139, International Monetary Fund.
    7. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
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