Panel logit regression analysis of the effects of corruption on inflation pattern in the Economic Community of West African states

Ayodeji, Idowu Oluwasayo

doi:10.1016/j.heliyon.2020.e05637

Cited by 8 publications

(9 citation statements)

References 28 publications

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“…Investigations have been conducted into the impact of corruption on inflation (Ayodeji, 2020). As per the findings, when all other parameters were held constant, a unit increase in the amount of corruption raised the chance of high inflation by 82.6%.…”

Section: Literature Reviewmentioning

confidence: 91%

A nexus between corruption, money laundering (ML) and inflation: evidence from South Asian countries

Shah

Aish

2021

JMLC

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Purpose Many studies of corruption and money laundering (ML) have been conducted throughout the previous few decades. The impact of corruption and ML on economic growth, banking performance and corporate financial performance has been the focus of various research. The present study aims to investigate the relationship between ML, corruption and inflation. Design/methodology/approach This study used the panel data of five South Asian countries from 2013 to 2019 (Pakistan, India, Bangladesh, Sri Lanka and Nepal). Further, fixed effect (FE) and random effect (RE) econometric regression models are used to analyze the data. Additionally, generalized methods of moment (GMM) technique is used to check the results robustness. Findings This study discovered that corruption and ML have a significant and positive link with inflation in five South Asian nations using the corruption perception index and the anti-money laundering (AML) index. Practical implications This research advises that government authorities strengthen anti-corruption and AML laws enforcement. Originality/value To the best of the authors’ knowledge, this is the first paper that explains the linkage between corruption, ML and inflation in five south Asian nations.

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Section: Literature Reviewmentioning

confidence: 91%

A nexus between corruption, money laundering (ML) and inflation: evidence from South Asian countries

Shah

Aish

2021

JMLC

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“…When corruption is pervasive in an economy, it can cause inefficiency, improper resource allocation, and a loss of trust in institutions and the government. Regarding inflation, corruption may raise prices by distorting resource allocation and causing fictitious shortages (Ayodeji, 2020). For instance, if dishonest officials agree to take bribes in exchange for contracts, this may result in higher pricing for products and services and a rise in inflation.…”

Section: Inflation and Control Of Corruptionmentioning

confidence: 99%

“…Corruption may threaten economic stability and prosperity by distorting markets, preventing investment, and lowering government income. The cost of products and services can directly be impacted by corruption in an economy, which can raise inflation (Ayodeji, 2020). Businesses may be asked to pay bribes to corrupt authorities in exchange for contracts, licenses, or other permits.…”

Section: Introductionmentioning

confidence: 99%

Examining Determinants of Regional Inflation Heterogeneity — A Robust Panel Data Analysis

Abbas,

Arshed

2023

SAGE Open

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This study examines the impact of different factors on inflation in six regions of the world between 2002 and 2021, analyzing variables such as control of corruption, political stability, broad money growth, GDP growth, and imports to exports ratio. This study seeks to investigate the crucial factors that cause inflation and their significance in different regions. The feasible generalized least square (FGLS) results indicate that the determinants of inflation vary in different regions, but broad money growth consistently increases inflation across all six regions, while control of corruption and political stability reduce inflation in most regions. The study has business implications for political stability and its contribution to inflation control. This should be taken into account when making investment choices by businesses operating in politically insecure regions. The study also highlights how crucial it is to control the growth of broad money and comprehend how GDP growth and inflation are related. Policymakers should establish effective inflation control measures that take into consideration the unique elements driving inflation in their region. JEL Classification: E31, P24, P44

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“…Inflation has been analyzed in relationship with corruption and fraudulent activities, with most studies suggesting the existence of a positive relation between inflation and corruption or fraud (Al-Marhubi 2000;Ata and Arvas 2011;Turedi and Altiner 2016;Omidi et al 2017). Other studies have analyzed the impact of corruption on inflation, indicating a positive relationship between them (Blackburn and Powell 2011;Samimi and Abedini 2012;Ayodeji 2020), although there is research that has suggested that fraud and financial crime have no significant impact on inflation (Okoye and Gbegi 2013). Nevertheless, there exists empirical support for a bidirectional positive link between them, since an increase in prices can be motivation for corruption, but corruption can also lead to an increase in the demand for goods, thus pushing prices even higher (Young 1992).…”

Section: Literature Reviewmentioning

confidence: 99%

Economic and Non-Economic Variables Affecting Fraud in European Countries

Ahmad

Ciupac-Ulici

Beju

2021

Risks

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Fraud is one of the most harmful phenomena, because it leads to collapse of organizations, causes economic downfall of countries, and destroys faith in a country’s capital markets. The impact of fraud is complex and has varying degrees depending on political and financial institutional structures of a country. In this paper, we investigate the combined effect of economic and non-economic variables on fraud using a sample of 41 developed, in transition, and developing European countries. The data cover the period July 2014–December 2020. Panel data techniques of pooled estimation and the dynamic panel data/generalized method of moments (DPD/GMM) is used, keeping in view the endogeneity perspective. Nevertheless, two-way impacts of fixed effect model estimation—cross-sectional and time-based (panel) effects (alternatively)—are used for analyzing the relationship among the given variables, based on Hausman specification test results. Empirical results of panel data extended REM and FEM approaches with country-specific cross-sectional effects showing that political stability, economic freedom, poverty, and GDP significantly affect fraud proliferation. Political stability is appraised to be the most scoring determinant of fraud incidence in a country.

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Panel logit regression analysis of the effects of corruption on inflation pattern in the Economic Community of West African states

Cited by 8 publications

References 28 publications

A nexus between corruption, money laundering (ML) and inflation: evidence from South Asian countries

A nexus between corruption, money laundering (ML) and inflation: evidence from South Asian countries

Examining Determinants of Regional Inflation Heterogeneity — A Robust Panel Data Analysis

Economic and Non-Economic Variables Affecting Fraud in European Countries

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