On the horizontal axis of this graph, I use the corruption perceptions index from Transparency International, Berlin. The index is constructed from information obtained from businessmen who are willing to report how often and how forcefully bribes and the like are demanded of them in various countries, and how high these are, and so on. The index extends from zero, in countries where corruption is greatest, to ten, where corruption is practically nonexistent.

For more, see my paper "Nature, power, and growth" (Scottish Journal of Political Economy, November 2001). That paper includes several references to the economic literature on corruption. 

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