THE RELATIONSHIP BETWEEN CORRUPTION AND ECONOMIC GROWTH IN PAKISTAN — LOOKING BEYOUND THE INCUMBENT

• Main Authors: Maria Amin, Adeel Ahmed, Khalid Zaman
• Format: Article
• Language: English
• Published: Saphira Publishing 2013-07-01
• Series: Oeconomics of Knowledge
• Subjects: Corruption; Per capita GDP; Education expenditures; Unit root test; Pakistan
• Online Access: https://sites.google.com/site/oeconomicsofknowledge/v5_i3_3q_2013_kz.pdf

Corruption has opaque significant consideration for researchers during the last few decades due to its effect on economic growth. This study examines the relationship between corruption and economic growth in Pakistan, covering the period from 1985 to 2010. Stationarity of the variables was checked through unit root test and then apply multiple regression technique. The results shows that government expenditures, education expenditures and population growth has a positive impact on per capita GDP, however, domestic investment and corruption has a negative impact on per capita income in Pakistan. It implies that corruption is a major factor impeding economic development. Corruption hampers economic growth, disproportionately burdens the poor and undermines the effectiveness of investment and aid.