Abstract
Corruption remains one of the most persistent impediments to sustainable development, particularly in developing and transitional economies. This study investigates the relationship between corruption, institutional strength, and economic development using a political economy framework. By analyzing hypothetical cross-national data from 15 developing nations, the research highlights how institutional quality significantly mediates the impact of corruption on growth, governance, and social equity. Findings suggest that countries with stronger institutions experience reduced corruption effects on GDP growth and better human development outcomes. The study concludes that anti-corruption policies must focus not merely on punitive measures but on strengthening transparency, judicial independence, and citizen oversight mechanisms.
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