The cost of corruption

Abstract

Purpose

The purpose of this paper is to examine the ways for the formulation of a model for calculating the cost of corruption per country, taking into account the social cost.

Design/methodology/approach

The methodology is practical exploration; the model is formulated along with the social cost of specific calculation. Based on two specific acts of corruption, bribery and overpricing of public works, these acts are private and public corruption. From there, the model is formulated along with the social cost of specific calculation, based on two specific acts of corruption, bribery and overpricing of public works.

Findings

This paper concludes that the model is applicable to all the countries of the world, based on their tax structure.

Research limitations/implications

Limitations do not exist in the model; the additional implications are the extension of the model. The model can be used for local governments or countries.

Practical implications

Countries can calculate the theoretical cost of corruption in their local, regional or national economies, based on two specific acts of corruption, in political, private and public corruption; bribery and overpricing of public works.

Social implications

The social implications include knowing the theoretical cost of corruption and their effects.

Originality/value

The model calculates the cost of corruption and its economic and social impact.

Citation

Monteverde, V.H. (2019), "The cost of corruption", Journal of Financial Crime, Vol. 26 No. 2, pp. 568-582. https://doi.org/10.1108/JFC-04-2018-0046