Mid Sweden University

This study aims to explore the problem area of perceived corruption and its relationship with economic regulations based on a regulation index. The purpose of the study is to explore whether a countries regulations on the economic market have a correlation with the perceived corruption, and whether this correlation exists over time. Controlling for countries total expenditure, GDP per capita, and its general trust. This is explored with quantitative method using a multivariate regression analysis with two chains of analysis due to the fact of Transparency Internationals changes in their measurement methodology in 2012. One chain is for the years 2005 and 2010, and the other chain for the years 2012 and 2015. The results partially confirms our theoretical assumptions showing that the regulation index, GDP per capita, and general trust have positive correlations with the perceived corruption, while a countries total expenditure shows no significance when controlling for all variables.