IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/24871.html
   My bibliography  Save this paper

The Causal Relationship between Corruption and Poverty: A Panel Data Analysis

Author

Listed:
  • Negin, Vahideh
  • Abd Rashid, Zakariah
  • Nikopour, Hesam

Abstract

Most of the studies which have investigated the link between corruption and poverty may draw conclusions on causality in the form of models that only show correlation. This study is set out to investigate the Granger causal relationship between corruption and poverty. It uses dynamic panel system GMM estimators, focuses on capability poverty using human poverty index (HPI) and is based on a sample of 97 developing countries during 1997-2006. The empirical findings reveal that corruption and poverty go together, with bidirectional causality.

Suggested Citation

  • Negin, Vahideh & Abd Rashid, Zakariah & Nikopour, Hesam, 2010. "The Causal Relationship between Corruption and Poverty: A Panel Data Analysis," MPRA Paper 24871, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:24871
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/24871/1/MPRA_paper_24871.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ravallion, Martin, 2002. "On the urbanization of poverty," Journal of Development Economics, Elsevier, vol. 68(2), pages 435-442, August.
    2. Swamy, Anand & Knack, Stephen & Lee, Young & Azfar, Omar, 2001. "Gender and corruption," Journal of Development Economics, Elsevier, vol. 64(1), pages 25-55, February.
    3. Sanjeev Gupta, 1998. "Does Corruption Affect Income Inequality and Poverty?," IMF Working Papers 98/76, International Monetary Fund.
    4. Vito Tanzi, 1998. "Corruption Around the World; Causes, Consequences, Scope, and Cures," IMF Working Papers 98/63, International Monetary Fund.
    5. Léonce Ndikumana, 2006. "Corruption and Pro-Poor Growth Outcomes: Evidence and Lessons for African Countries," Working Papers wp120, Political Economy Research Institute, University of Massachusetts at Amherst.
    6. Sanjeev Gupta & Hamid Davoodi & Rosa Alonso-Terme, 2002. "Does corruption affect income inequality and poverty?," Economics of Governance, Springer, vol. 3(1), pages 23-45, March.
    7. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Aggregating governance indicators," Policy Research Working Paper Series 2195, The World Bank.
    8. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    9. Paldam, Martin, 2002. "The cross-country pattern of corruption: economics, culture and the seesaw dynamics," European Journal of Political Economy, Elsevier, vol. 18(2), pages 215-240, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Purwantini Rahayu, Ina & Widodo, Tri, 2012. "The Causal Relationship between Corruption and Poverty in ASEAN: a General Method of Moments/Dynamic Panel Data Analysis," MPRA Paper 78328, University Library of Munich, Germany.
    2. Mustafa ÜNVER & Julide Yalçýnkaya KOYUNCU, 2016. "The Impact of Poverty on Corruption," Journal of Economics Library, KSP Journals, vol. 3(4), pages 632-642, December.
    3. Ambar, Rabnawaz, 2015. "Corruption, Inequality and Economic Growth," MPRA Paper 70375, University Library of Munich, Germany, revised 2015.
    4. Kodila Tedika, Oasis, 2012. "Consequences De La Corruption : Panorama Empirique
      [Consequences of Corruption : Empirical survey]
      ," MPRA Paper 41482, University Library of Munich, Germany.

    More about this item

    Keywords

    Corruption; Poverty; Panel Data Analysis;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:24871. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.