CORRUPTION, INCOME INEQUALITY AND ECONOMIC GROWTH: AN EMPIRICAL EVIDENCE FROM PAKISTAN
| Main Authors: | Rehmat Ullah Awan, Nazia Rasool, Shazia Rahim |
|---|---|
| Format: | Article Journal |
| Terbitan: |
, 2020
|
| Online Access: |
https://zenodo.org/record/4421811 |
Daftar Isi:
- The present study attempted to analyze the impact of corruption on output and income inequality in long run and short run using time series data spanning from 1980 to 2013 for Pakistan. After testing stationary properties through Augmented Dickey Fuller (ADF) and Phillips Perron (PP) unit root tests, Auto Regressive Distributed Lag (ARDL) developed by (Pesaran & Shin, 1999) and (Pesaran, Shin, & Smith, 2001) has been applied. Data have been obtained from World development Indicators (WDI), Pakistan’s Economic Survey, International Country Risk Guide (ICRG), Deininger and Squire and UNO-WIDER data set. Findings of the study indicate that corruption exerts negative and statistically significant effects on output while positive and statistically significantly effect on income inequality in the long run. In short run, corruption affects output positively and significantly. Impact of corruption on income inequality is also positive but statistically insignificant in short run. Government expenditures positively affect output but the income inequality negatively in Pakistan.