IDEAS home Printed from https://ideas.repec.org/a/eme/jmlcpp/jmlc-09-2021-0096.html
   My bibliography  Save this article

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

Author

Listed:
  • Ijaz Hussain Shah
  • Kinza Aish

Abstract

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.

Suggested Citation

  • Ijaz Hussain Shah & Kinza Aish, 2021. "A nexus between corruption, money laundering (ML) and inflation: evidence from South Asian countries," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 25(4), pages 730-741, November.
    • Handle: RePEc:eme:jmlcpp:jmlc-09-2021-0096
    DOI: 10.1108/JMLC-09-2021-0096
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JMLC-09-2021-0096/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JMLC-09-2021-0096/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JMLC-09-2021-0096?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Inflation; Panel data; Corruption; Money laundering; C33; D73; E31; E62;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jmlcpp:jmlc-09-2021-0096. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.