Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan
The aim of present paper is to investigate the effect of corruption on financial development in Pakistan by using ARDL bounds testing approach to cointegration. The direction of causal relationship between the variables is examined by using VECM granger causality approach. Our empirical findings indicate that corruption promotes financial development. Causality analysis reveals that corruption and financial development are complementary.
|Date of creation:||02 Mar 2011|
|Date of revision:||10 Mar 2011|
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