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Corruption, Political Stability and Economic Growth

Author

Listed:
  • Ghulam Shabbir

    (Assistant Professor, Department of Economics, Forman Christian College (A Chartered University) Lahore)

  • Mumtaz Anwar

    (is Director, Punjab Economic Research Institute (PERI), Lahore)

  • Shahid Adil

    (PhD Scholar, Department of Economics, University of the Punjab, Lahore)

Abstract

This paper gives insight of the role of political stability in investigating the two competing hypotheses in Developing Eight Muslim countries, and also investigates whether conditional liaison between corruption and political stability matters or not. The empirical findings indicate that investment, population and political stability play positive role in promoting economic growth. Corruption not only impact growth but also influenced by the institutional quality that a nation experiences. Corruption acts as sands in the wheels in the nations having higher degree of political stability, and greases the wheels in less politically stable countries such as Nigeria and Pakistan. Thus, political stability is conducive to growth, as it reduces the social unrests, political turmoil, and encourages investment, and there by economic growth.

Suggested Citation

  • Ghulam Shabbir & Mumtaz Anwar & Shahid Adil, 2016. "Corruption, Political Stability and Economic Growth," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 689-702.
    • Handle: RePEc:pid:journl:v:55:y:2016:i:4:p:689-702
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    File URL: http://www.pide.org.pk/pdf/PDR/2016/Volume4/689-702.pdf
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    More about this item

    Keywords

    Corruption; Economic Growth; Political Stability; Conditional Cooperation;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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