Economic costs of corruption: Theoretical and empirical aspects

Corruption is a complex economic and social phenomenon that negatively affects economic growth, institutions, foreign investment, and the business environment. This analysis covers empirical and theoretical research from the past five years (2019-2024), focusing on the transmission channels through which corruption operates and the effects it produces. Empirical studies (IMF, World Bank, Transparency International) show that corruption reduces GDP by 1-2% annually, increases business costs by 30%, and decreases foreign investment inflows. Institutional weakness and legal uncertainty further aggravate the economic consequences of corruption. Theoretical research (Kaufmann & Vicente, Rose-Ackerman & Palifka, Wei & Javorcik) confirms that weak institutions and high regulatory uncertainty are key factors in the spread of corruption. Digitalization and transparency have been identified as key strategies in combating corruption, but their effectiveness depends on political will. The conclusion is that systemic anti-corruption reform, combined with strengthening the judiciary and digitalizing public services, can significantly reduce the negative effects of corruption and enhance economic development. Future research should focus on the long-term effects of reforms and new methods of measuring corruption.