Abstract
This study aims to investigate the causal linkages between corruption and three of
its main determinants comprised of income level, inflation and income inequality
in Pakistan over the years 1980-2013. The findings support that inter alia inflation
causes more corruption while income rise goes the other way around. Overall the
impact of extant rampant corruption implies for the higher economic growth as sin
qua none of lowering inflation and therein improving income inequalities in
Pakistan. On these bases, it is suggested that policy formulation to curb corruption
level needed to be grounded in accord with the economic policies of the country.
Moreover, there is indication of tradeoff between lowering corruption and inflation
implying for the requisites of ingenuity in pragmatic approach by the extant
government apparatuses, ceteris paribus.
Muhammad Shakeel , Aziz Ahmed , Shahbaz Sharif. (2020) Linkages of Corruption with Income, Inflation and Income Inequality in Pakistan, Journal of the Research Society of Pakistan, Volume 57, Issue 1.
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