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Towards the Quest to Reduce Corruption in BRICS Nations: Is There a Synergy Between Corruption and Economic Growth?

Author

Listed:
  • Ashmita Kesar

    (Shri Mata Vaishno Devi University
    Gitam University)

  • Pabitra Kumar Jena

    (Shri Mata Vaishno Devi University)

  • Bandi Kamaiah

    (Gitam University)

  • Festus Victor Bekun

    (Istanbul Gelisim University)

  • Tania Dehury

    (Saudi Sovereign Wealth Fund (PIF))

Abstract

This study scrutinizes the impact of corruption on the economic growth of five emerging countries, namely Brazil, Russia, India, China, and South Africa (BRICS), over the period 1996–2020. The study has employed panel quantile regression and the two-stage least square regression technique. Empirical results of the study confirm that control of corruption, population, political stability, and gross capital formation shows a positive impact on economic growth, whereas the impact of trade openness and government spending on economic growth is insignificant. Therefore, according to the current study, regulations must be strengthened to manage corruption better, i.e., there is a need to strengthen institutional apparatus in the study area, which will encourage economic development. Additionally, BRICS economies’ officials need to pursue policies that will expand with more investment and, ultimately, investment spending, which will increase after corruption is effectively controlled. This proposition is in line with the Keynesian school of thought.

Suggested Citation

  • Ashmita Kesar & Pabitra Kumar Jena & Bandi Kamaiah & Festus Victor Bekun & Tania Dehury, 2024. "Towards the Quest to Reduce Corruption in BRICS Nations: Is There a Synergy Between Corruption and Economic Growth?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 18663-18683, December.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:4:d:10.1007_s13132-024-01857-5
    DOI: 10.1007/s13132-024-01857-5
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    More about this item

    Keywords

    Economic growth; Control of corruption; 2SLS; Institution; BRICS nations and quantile regression;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • F35 - International Economics - - International Finance - - - Foreign Aid

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