Bribery in International Business in European Union Countries: Patterns and Explanations

Abstract

Abstract Corruption across European Union member countries varies significantly. Cluster analysis groups these countries into four categories. Regression analysis using Corruption Perception Index as a measure of corruption and independent variables—nature of democracy, human development index, gross domestic product, per capita income, years in the Union, and Euro currency membership—indicates that least corrupt countries are “full” democracies, where civil liberties are respected and reinforced by a political culture that includes an independent judiciary and media. Bribe-taking is significantly higher in “flawed” democracies where the political culture is underdeveloped, participation in politics is low and there are governance issues.