Linkages of Corruption with Income, Inflation and Income Inequality in Pakistan

This study aims to investigate the causal linkages between corruption and three of its main determinants comprised of income level, inflation and income inequality in Pakistan over the years 1980-2013. The findings support that inter alia inflation causes more corruption while income rise goes the o...

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Bibliographic Details
Published in:Journal of the Research Society of Pakistan 2020-06, Vol.57 (1), p.347
Main Authors: Muhammad Shakeel, Aziz, Ahmed, Sharif, Shahbaz
Format: Article
Language:English
Subjects:
Bribery
Causality
Consumer Price Index
Corruption
Economic growth
Economic policy
GDP
Gross Domestic Product
Income distribution
Income inequality
Inflation
Informal economy
Researchers
Studies
Time series
Variables
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Summary:This study aims to investigate the causal linkages between corruption and three of its main determinants comprised of income level, inflation and income inequality in Pakistan over the years 1980-2013. The findings support that inter alia inflation causes more corruption while income rise goes the other way around. Overall the impact of extant rampant corruption implies for the higher economic growth as sin qua none of lowering inflation and therein improving income inequalities in Pakistan. On these bases, it is suggested that policy formulation to curb corruption level needed to be grounded in accord with the economic policies of the country. Moreover, there is indication of tradeoff between lowering corruption and inflation implying for the requisites of ingenuity in pragmatic approach by the extant government apparatuses, ceteris paribus.
ISSN:0034-5431