Economic analysis of corruption: evidence from Pakistan. Issue 1 (2nd January 2022)

• Record Type: Journal Article
• Authors: Uroos, Afshan; Shabbir, Malik Shahzad; Zahid, Muhammad Umar; Yahya, Ghulam; Abbasi, Bilal Ahmed
• Is Part Of: Transnational corporations review. Volume 14:Issue 1(2022)
• Page Start: 46
• Page End: 61
• Publication Date: 2022-01-02
• Subjects: Corruption -- trade openness -- economic growth -- Pakistan; ARDL -- public spending; 338.88
• DOI: 10.1080/19186444.2021.1917331
• Languages: English
• ISSNs: 1918-6444

Abstract

Abstract: Misuse of public power is generally known as corruption, and this issue becomes an international dilemma in the economic world. However, different levels of corruption exist in developing and developed countries. This study attempts to identify the economic determinants of corruption in Pakistan and investigate the impact of trade openness on corruption. This study empirically inspects these impacts by using data for the period 1987–2017. This study is based on time series analysis; augmented dickey fuller test (ADF), Tobit Model of Censored Regression, and Autoregressive Distributed Lag (ARDL) are used to estimate significant economic determinants of corruption in Pakistan. It is found that literacy rate, GDP growth, and economic integration have a negative effect on corruption, whereas Inflation is found to have a positive effect on corruption in Pakistan. However, investment, an extensive index, public spending, and income distribution are statistically insignificant as economic determinants in the case of Pakistan.