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Corruption, Political Instability and Sustainable Development:The Interlinkages

Author

Listed:
  • Ali Khan, Rana Ejaz

    (Department of Economics, The Islamia University of Bahawalpur, Pakistan)

  • Farooq, Sarwat

    (Department of Economics, The Islamia University of Bahawalpur. Pakistan)

Abstract

The study empirically probed the interdependence among corruption, political instability and sustainable development for a panel of 28 developing economies and disaggregated sample of lower-middle and upper-middle income economies for the time period 2000-2014. The three stage least square (3SLS) estimation revealed that corruption negatively affects sustainable development and political instability. The political instability impedes sustainable development and corruption. The sustainable development reduces political instability and corruption. It explains that corruption enhances political stability and political stability increases corruption. The disaggregated estimates of developing economies are almost same as aggregate estimates of developing economies, however political instability has statistically insignificant effect on sustainable development in upper-middle-income economies. To go forward for sustainable development, the elimination of corruption is imperative.

Suggested Citation

  • Ali Khan, Rana Ejaz & Farooq, Sarwat, 2019. "Corruption, Political Instability and Sustainable Development:The Interlinkages," Journal of Quantitative Methods, University of Management and Technology, Lahore, Pakistan, vol. 3(1), pages 57-84.
    • Handle: RePEc:ris:jqmumt:0021
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    Cited by:

    1. Pasha, Sukrishnalall, 2020. "The impact of political instability on economic growth: the case of Guyana," MPRA Paper 103145, University Library of Munich, Germany.

    More about this item

    Keywords

    corruption; political instability; sustainable development; income inequality; resource curse; sand the wheels;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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