Political Instability & Economic Growth
A Rigorous Economic Analysis of Corruption in the Landscape of Pakistan


Muhammad Atif |
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Volume: 1 | Issue : 2 (2023/12/01)

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Abstract

Background: Corruption can be defined as the misuse of public assets, which is a global issue because it can affect the overall economic condition of the country. Since 1947, Pakistan has faced a lot of corruption, which affects various factors of the country including political growth as well as economic growth.


Research Aim: This paper has studied the relationship between economic growth and corruption and what are the factors of corruption in Pakistan.

Methodology: This study is an empirical study based on using the data from 1998-2022. The following analysis which includes the Augmented Dickey-Fuller test and Tobit Model of Censored Regression has been used for analyzing the determinants of corruption in Pakistan.

Results: The results found that there is a negative influence of GDP growth and the literacy rate of Pakistan on corruption while most prominently inflation has been found to be a positive influence on corruption.

Conclusion: To conclude GDP, Literacy rate and Economic integration have a positive influence on corruption in Pakistan while Literacy Rate and Inflation are significant economic determinants of corruption.