This article examines the causes of corruption, defined as the misuse of public office for private gain, by analyzing several indexes of perceived corruption compiled from business risk surveys for the 1980s and 1990s. The study finds support for six arguments: countries with Protestant traditions, histories of British rule, more developed economies, and higher imports are less corrupt; federal states are more corrupt; long exposure to democracy predicts lower corruption; and openness to trade may reduce corruption. The analysis suggests that fighting corruption is challenging, as it is influenced by distant past factors and requires radical and long-lived democratization and extensive trade liberalization. The findings also indicate that countries can sometimes grow their way out of corruption if other factors lead to vigorous economic development. The study uses three annual indexes of perceived corruption prepared by Transparency International and an index compiled by Business International to assess the explanatory power of various theories of the causes of corruption. The results are robust across different models and data sources, providing strong evidence for the hypothesized relationships.This article examines the causes of corruption, defined as the misuse of public office for private gain, by analyzing several indexes of perceived corruption compiled from business risk surveys for the 1980s and 1990s. The study finds support for six arguments: countries with Protestant traditions, histories of British rule, more developed economies, and higher imports are less corrupt; federal states are more corrupt; long exposure to democracy predicts lower corruption; and openness to trade may reduce corruption. The analysis suggests that fighting corruption is challenging, as it is influenced by distant past factors and requires radical and long-lived democratization and extensive trade liberalization. The findings also indicate that countries can sometimes grow their way out of corruption if other factors lead to vigorous economic development. The study uses three annual indexes of perceived corruption prepared by Transparency International and an index compiled by Business International to assess the explanatory power of various theories of the causes of corruption. The results are robust across different models and data sources, providing strong evidence for the hypothesized relationships.