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Impact of corruption, unemployment and inflation on economic growth evidence from developing countries

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  • Ijaz Uddin

    (Visiting Lecturer, Department of economics, Government AFzal Khan LaLa Postgraduate college Matta Swat
    PhD Scholar School of Economics,, Abdul Wali khan university Mardan)

  • Khalil Ur Rahman

    (Master Student, Department of economics, Government AFzal Khan LaLa Postgraduate college Matta Swat)

Abstract

The main objective of this empirical study to examine the impact of corruption, unemployment and inflation on economic growth for seventy nine (79) developing countries of the world for the period from 2002 to 2018. This study uses Panel unit root tests (PUT), Pooled Mean Group (PMG), Fully modified ordinary least square (FMOLS), and Dynamic least square (DOLS), for the data estimation. The estimates of PUT reveal that all the variables are mixed order of integration. The PMG, FMOLS and DOLS estimates reveal that corruption, unemployment and political stability have negative effect on GDP per capita, while Inflation, governance effectiveness and rule of law have positive effect on GDP per capita. This empirical study has some policy implication for government and policy makers. Graphical Abstract

Suggested Citation

  • Ijaz Uddin & Khalil Ur Rahman, 2023. "Impact of corruption, unemployment and inflation on economic growth evidence from developing countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(3), pages 2759-2779, June.
    • Handle: RePEc:spr:qualqt:v:57:y:2023:i:3:d:10.1007_s11135-022-01481-y
    DOI: 10.1007/s11135-022-01481-y
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