Empirical analysis of economic growth in Greece and the relationship between the index of democracy and corruption (2012–2022)

Efthalitsidou Kyriaki ,Karagiannopoulou Sofia ,Sariannidis Nikolaos ,Konstantinos Spinthiropoulos ,Tziampazi Fani

doi:10.24294/jipd10445

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Empirical analysis of economic growth in Greece and the relationship between the index of democracy and corruption (2012–2022)

Efthalitsidou Kyriaki

Karagiannopoulou Sofia

Sariannidis Nikolaos

Konstantinos Spinthiropoulos

Tziampazi Fani

Journal of Infrastructure Policy and Development 2025, 9(2), 10445; https://doi.org/10.24294/jipd10445

Submitted：20 Nov 2024

Accepted：24 Dec 2024

Published：10 Apr 2025

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Abstract

This study investigates the complex interrelationship between democracy, corruption, and economic growth in Greece over the period 2012–2022. Using data from Transparency International, the Economist Intelligence Unit, and Eurostat, appropriate methods such as Ordinary Least Squares (OLS) regression, Generalized Method of Moments(GMM) estimation, and Granger causality tests were applied. The findings reveal that increased democracy correlates positively with reported corruption, likely reflecting heightened transparency and exposure. Conversely, economic growth shows a negative association with corruption, underlining the role of structural reforms and institutional improvements. These insights emphasize the need for strengthening democratic institutions, promoting digital governance, and implementing targeted economic reforms to reduce corruption and foster sustainable development.

Keywords

Generalized Gradient Approximation (GGA).

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