The Causal Relationship between Corruption and Poverty: A Panel Data Analysis
AbstractMost of the studies which have investigated the link between corruption and poverty may draw conclusions on causality in the form of models that only show correlation. This study is set out to investigate the Granger causal relationship between corruption and poverty. It uses dynamic panel system GMM estimators, focuses on capability poverty using human poverty index (HPI) and is based on a sample of 97 developing countries during 1997-2006. The empirical findings reveal that corruption and poverty go together, with bidirectional causality.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 24871.
Date of creation: 25 Jun 2010
Date of revision:
Corruption; Poverty; Panel Data Analysis;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
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