Impact of Corruption on Business Development: Empirical Estimates

The paper considers the relationship of corruption and domestic business environment. The authors propose a method of quantitative estimation of the impact of corruption on the business climate through the use of international ratings. The quantitative estimations obtained allow to construct an alternative rating of business environment, free of the influence of corruption, and estimate, with its help, the comparative advantages of Russia as of late 2012. In addition the paper determines the limits of possible improvement of the business climate in Russia on the assumption that the effectiveness of anti-corruption policy would be low.