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Corruption Prevention and Economic Growth: A Mediating Effect of Rule of Law

Author

Listed:
  • Qian Hongdao
  • Ayesha Mumtaz
  • Hamid Mukhtar
  • Hafiz Abdul Rahman Saleem
  • Sonia Azam

Abstract

This article is based on the mediating effect of rule of law between control of corruption and economic growth in China. Many empirical studies have been conducted on the relationship of corruption with economic growth, income, democracy, education, employment rate and the likes. Most of them are based on linear relationship and evaluate the impact of corruption and corruption prevention on different economic and social variables. But the study under consideration is focusing upon the role of rule of law in control of corruption and economic growth in China. It puts forth a question that what kind of effects rule of law put on economic growth and corruption prevention. The top seven economies of the world have been selected and data has been extracted from the Worldwide Governance indicators of the World Bank. In order to address the above question, the study was divided into two major parts. First, the author has applied regression analyses to see the relationship among the economic growth, rule of law and corruption; and also the impact of economic growth and control of corruption on rule of law. Then, mediation analysis has been conducted to see if rule of law plays a role in control of corruption and economic growth. The results show that economic growth significantly improve the level of control of corruption and rule of law plays a partial intermediary role in the process of economic development to enhance the corruption prevention. Second, the author has discussed the condition of rule of law and corruption in the era of the current leader, Xi Jinping and before 2012.

Suggested Citation

  • Qian Hongdao & Ayesha Mumtaz & Hamid Mukhtar & Hafiz Abdul Rahman Saleem & Sonia Azam, 2018. "Corruption Prevention and Economic Growth: A Mediating Effect of Rule of Law," International Journal of Social Science Studies, Redfame publishing, vol. 6(2), pages 128-143, February.
    • Handle: RePEc:rfa:journl:v:6:y:2018:i:2:p:128-143
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    References listed on IDEAS

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    Cited by:

    1. Sulemana, Iddisah & Kpienbaareh, Daniel, 2018. "An empirical examination of the relationship between income inequality and corruption in Africa," Economic Analysis and Policy, Elsevier, vol. 60(C), pages 27-42.

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    More about this item

    Keywords

    rule of law; corruption; economic growth; China;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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