Title: Is there a relation between corruption and ease of doing business?

Authors: Ramroop K. Sharma

Addresses: M.K. Amin Arts and Science College and College of Commerce, The Maharaja Sayajirao University of Baroda, Padra, Vadodara, Gujarat, India

Abstract: Corruption is a global phenomenon. It is worth investigating whether corruption (Corruption Perception Index: CPI) and ease of doing business (EODB) are correlated and their causality. Results show a high degree of correlation between CPI and EODB ranks and scores considering the database of CPI (Transparency International) and the EODB (World Bank) for 180 countries for the year 2019. Findings imply that a decrease in corruption improves the EODB and there is unidirectional causality between CPI and EODB ranks. The paper contributes to corruption and EODB literature by examining the correlation and causality between CPI and the EODB, a subject not recently examined. The economies must devise suitable policies to abate corruption and promote EODB for business competitiveness and sustainability, to promote investments for skills, start-ups, and innovations, and to support the extant business environment as well as to protect the interests of stakeholders, particularly in emerging nations.

Keywords: Corruption Perception Index; CPI; ease of doing business; EODB; investments; emerging nations; Granger causality.

DOI: 10.1504/IJBG.2025.147962

International Journal of Business and Globalisation, 2025 Vol.40 No.4, pp.358 - 384

Received: 19 Jul 2022
Received in revised form: 29 Aug 2022
Accepted: 13 Oct 2022
Published online: 12 Aug 2025 *

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