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Corruption and financial sector performance: A cross-country analysis

Author

Listed:
  • Naved Ahmad

    () (Institute of Business Administration (IBA), Karachi)

  • Shahid Ali

    () (Institute of Business Administration (IBA), Karachi)

Abstract

In this paper we explore the effects of corruption on financial sector performance for a sample of 38 developed and developing economies for the period 1995-2005. Using system-GMM technique our results demonstrate that corruption undermines the efficacy of a developed financial sector. Governments, therefore, should control corruption and to improve financial sector performance in order to increase the likelihood of economic growth and prosperity.

Suggested Citation

  • Naved Ahmad & Shahid Ali, 2010. "Corruption and financial sector performance: A cross-country analysis," Economics Bulletin, AccessEcon, vol. 30(1), pages 303-308.
  • Handle: RePEc:ebl:ecbull:eb-09-00819
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    File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I1-P26.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ozlem KUTLU FURTUNA, 2016. "The Nexus between Discretionary Expenditures and Corruption: Industry Level Perspectives from BRIC and Turkey," Proceedings of Business and Management Conferences 4406932, International Institute of Social and Economic Sciences.
    2. Farooq, Abdul & Shahbaz, Muhammad & Arouri, Mohamed & Teulon, Frédéric, 2013. "Does corruption impede economic growth in Pakistan?," Economic Modelling, Elsevier, vol. 35(C), pages 622-633.
    3. repec:eee:ecanpo:v:54:y:2017:i:c:p:83-95 is not listed on IDEAS
    4. Muhammad Shahbaz & Qazi Muhammad Adnan Hye & Muhammad Shahbaz Shabbir, 2013. "Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 1(10), pages 113-124, October.

    More about this item

    Keywords

    Transparency International Corruption Perceptions index; financial Sector Performance; Domestic Credit; and Panel Estimation.;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • G0 - Financial Economics - - General

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