The Price of Corruption Uncovered: Hidden Dynamics and Implications for Firms, Institutions, and Sustainable Development

In the past decades, it has been uncovered that having strong macro-economic and fiscal positions is not enough in having sustained growth rates. The quality of governance, especially the quality of institutions, plays a vital role in explaining the variety of growth rates across countries with similar economic structures. Corruption, which is a key issue in most of the recent studies, is shown as an element that alters growth dynamics and sustainability. Thus, from a sustainable development perspective, this article systematically reviews the literature by focusing on firm and country levels. Two key indicators that are commonly used in the literature are the World Bank’s Enterprise Survey and the Corruption Perception Index. By using these indicators and examining articles that utilize the particular data, this article highlights how corruption influences everything from firm productivity to exports, as well as broader terms such as economic growth and inequality. Particularly, the “grease the wheels” vs. “sand the wheels” debate receives attention in the literature. The main argument in this debate is that, even though corruption may hasten business in the short run, its long-term effects seem strongly harmful. The article also underlines the importance of having high-quality institutions and strong legal enforcement to mitigate the potential harm of corruption. Some important actions to fight corruption include governance reforms, digitalization, and strong corporate accountability.   Cite this article as: Öncü, İ. N. (2026). The price of corruption uncovered: hidden dynamics and implications for firms, institutions, and sustainable development. Journal of Business Administration and Social Studies, 10, 0010, doi: 10.5152/JBASS.2026.26010.