Corruption: theory and evidence through economies in transition

Corruption is a serious problem for economies in transition. It causes retardation in the development of institutions conducive to economic growth. In this sense, it introduces inertia in transition dynamics. Generally, corruption is a deep‐rooted social and economic problem in developing economies everywhere in the world. Presents an analysis of political corruption and argues why some countries are afflicted by it more than others are. For this, several lines of argument are explored, empirical tests and observations are analyzed and finally a model for an economy in transition is presented.