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The European Physical Journal B

, Volume 56, Issue 2, pp 157–166 | Cite as

Quantitative relations between corruption and economic factors

  • Jia Shao
  • Plamen Ch. Ivanov
  • Boris Podobnik
  • H. Eugene Stanley
Interdisciplinary Physics

Abstract.

We report quantitative relations between corruption level and economic factors, such as country wealth and foreign investment per capita, which are characterized by a power law spanning multiple scales of wealth and investment per capita. These relations hold for diverse countries, and also remain stable over different time periods. We also observe a negative correlation between level of corruption and long-term economic growth. We find similar results for two independent indices of corruption, suggesting that the relation between corruption and wealth does not depend on the specific measure of corruption. The functional relations we report have implications when assessing the relative level of corruption for two countries with comparable wealth, and for quantifying the impact of corruption on economic growth and foreign investment.

PACS.

89.90.+n Other topics in areas of applied and interdisciplinary physics 05.45.Tp Time series analysis 05.40.Fb Random walks and Levy flights 

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Copyright information

© EDP Sciences/Società Italiana di Fisica/Springer-Verlag 2007

Authors and Affiliations

  • Jia Shao
    • 1
  • Plamen Ch. Ivanov
    • 1
    • 2
  • Boris Podobnik
    • 1
    • 3
    • 4
  • H. Eugene Stanley
    • 1
  1. 1.Center for Polymer Studies and Department of PhysicsBoston UniversityBostonUSA
  2. 2.Institute of Solid State Physics, Bulgarian Academy of SciencesSofiaBulgaria
  3. 3.Zagreb School of Economics and ManagementZagrebCroatia
  4. 4.Faculty of Civil Engineering, University of RijekaRijekaCroatia

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