TIB again!

Consistent with the less flattering view of corruption, it hampers growth, reduces income, increases inequality and reduces investment, can increase the size of the unofficial economy, and is associated with lower levels of human capital, urbanisation, financial depth, and foreign trade. Corruption is lower in countries that are more open to foreign trade, countries with longer exposure to democracy, countries that are more democratic, countries with greater political stability and greater freedom of the press, and countries with parliamentary systems.

TIB looks at newspaper level data on bribes paid in sectors of the economy. This allows people to understand the persons or enterprises that pay and receive bribes in addition to the characteristics of the institutional and macroeconomic environment. People may find, going through the report, that excess demand is an important determinant of corruption. Bribes are lower where the utility services of the ministries have been privatised. One potential explanation for this is that private sector might have a greater incentive than public servants to impose stiff penalties upon employees taking bribes and reducing bribe payments.