engleski

Corruption – constant or ephemeral phenomenon of croatian society

The basic objective of this study is to determine whether there is a correlation between the number of prosecuted acts of corruption and the corruption perceptions index (CPI) in Croatia from 2000 to 2011, and if there is any correlation between the corruption perceptions index and gross domestic product (GDP) respectively. The initial hypothesis of this study is that reducing corruption to acceptable levels (CPI > 5) would significantly improve democratic processes and provide faster economic development. Research results confirm the existence of a positive correlation between the corruption perceptions index and gross domestic product. Countries with CPI below 5 points have serious economic problems, ie they operate inefficiently and far below the level of production possibilities frontiers. The same applies to Croatia as well. Research results are based on methods of microeconomic and macroeconomic analysis and methods of regression and correlation analysis. Vigorous fight against corruption which would result in short term increase in corruption perceptions index of one point (CPI=5) would be followed by rise of gross domestic product by 12%. Indecision in fighting corruption and focus on personal interests instead of general welfare will be accompanied by stagnation and decline. Decrease of corruption perceptions index by 0, 5 points (CPI=3, 5) would be followed with a drop in gross domestic product by 13%. Findings of this study provide a realistic idea of the importance of prosecuting corruption offenses and the necessity of political elites creating such socio-economic relations that would allow talented individuals and companies to reach their full potential.

corruption perceptions index; gross domestic product; economic development; regression and correlation analysis

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