The impact of corruption, or formally known with the definition the misuse of public office for private gain, it is relatively similar across countries. Generally, corruption thought to have negative effects on society but there are some other scholars which have shed light on the positive effect of corruption may have in economic development. These effects can be such as how corruption can affect productivity and how corruption can be a positive indicator for investing in a corrupt marketplace.
The World Bank (2001) has identified corruption as” the single greatest obstacle to economic and social development”. More recently, the World Bank (2004) estimated that more than 1 trillion US $ is paid in bribes each year and that countries tackle corruption improve governance ant the rule of law could increase per capita incomes.The reason why corruption differs among countries is not known yet. A lot of empirical searches had set the subject in the front line largely owing because of the increase of corruption indices and the interest that countries showed for measuring this phenomenon.The most common indices are transparency Index’s Corruption Perception Index and Global Corruption Barometer. These indexes compile information from a number of sources such as survey data from investment consultants, international and domestic business people and expert panels on levels of perceived corruption.
The present paper employs data from perception- based indices on corruption to examine the relationship between income inequality, , poverty and corruption. In fact, researchers showed little attention on examining the relationship between these factors. Moreover, inequality results in economic inefficiency, social instability, and unfairness in the country. Inequality affects economic growth as well as poverty, it affects negatively the economic growth rate (Bagchi & Svejnar,2015).By further examining the relationship between corruption, poverty and income inequality we can better understand whether this particular issue could need reforms in Bulgaria which is one of the countries that nowadays faces high levels of income inequality and poverty. The current paper tries to fill this gap and investigates the relationship among corruption, income inequality and poverty in Bulgaria.The outline of this paper is as following;Section 1 gives an introduction to the research paper and defines the purpose.Section 2 encloses literature review Section 3 outlines the definition of corruption, income inequality, and poverty and how are related in Bulgaria.Section 4 Data and methodology Section 5 Reforming proposals we suggest and conclude the paper with a conclusion