Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan
AbstractThe aim of present paper is to investigate the effect of corruption on financial development in Pakistan by using ARDL bounds testing approach to cointegration. The direction of causal relationship between the variables is examined by using VECM granger causality approach. Our empirical findings indicate that corruption promotes financial development. Causality analysis reveals that corruption and financial development are complementary.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 29640.
Date of creation: 02 Mar 2011
Date of revision: 10 Mar 2011
Financial Development; Corruption; Cointegration;
Find related papers by JEL classification:
- B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-26 (All new papers)
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