---

Corruption and Economic Growth: A Random Effect Approach

Corresponding Author : Md. Gias Uddin Khan (khangias33@gmail.com)

Authors : Md. Gias Uddin Khan (khangias33@gmail.com)

Keywords : Corruption, economic growth, random effect approach

Abstract :

This paper focuses on the relationship between corruption and economic growth worldwide using the panel data for 147 countries for the period of 2002 to 2017. It uses the random effect model suggested by the Hausman test to explore this relationship. The findings suggest that the corruption has significant negative impact on the economic growth of a country. The results further indicate that the economic growth responds positively with capital and negatively with the initial output. However, population growth surprisingly affects the growth positively which contradicts the existing theory. Hence, this study provides an insight to formulate a policy to reduce the level of corruption in order to ensure strong economic growth.     

Published on June 30th, 2020 in VOL 31, No. 1, Social Sciences