The purpose of the study is to investigate the nexus between corruption, GDP growth and foreign direct investments [FDI] within the time period 2012-2020. By doing so we aim to distinguish any significant correlation between the variables. The chosen variables are explained by using economic theories. The central part of this study is a pair of regressions, which help develop this investigation by providing material which is examinable from many different angles.

In the fourth chapter of this study, we present and explain our selection of dependent and independent variables. Previous studies are provided in order to substantiate and support the projected effect each independent variable will have on our dependent variables BNP growth and FDI.

Within this field of investigation, it is especially important to interpret statistics in a correct and thoughtful way. Statistics often present an oversimplified version of reality, which can be dangerous if dealt with incorrectly. There is also information that is biased, or untrue, and it has therefore been essential for us to primarily use data collected by internationally renowned organizations and peer-reviewed authors.

While analyzing this paper it became clear to us that the results weren’t as clear as we expected. There is no significant relationship between corruption and GDP growth. Why this is, isn’t obvious. It may be due to the fact that corruption has no short-term effect on GDP growth, and that the study period is too brief. It could also be that, from 2012 to 2020, for the countries in question, corruption has no effect on GDP growth.