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MIGRANT REMITTANCES AND CORRUPTION: An Empirical Analysis

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  • Muhammad Tariq MAJEED*

Abstract

This study revisits the sources of corruption using a panel data for 122 countries. It contributes to the literature by analyzing the relationship between remittance and corruption with particular focus on analysis of distribution of dependent variable (corruption). In cross sectional and panel settings, it is found that ‘one standard deviation increases the remittance variable in association with an increase in corruption of 0.33 points, or 25 per cent of a standard deviation in the corruption index. It is also investigated whether greater remittances consistently increase corruption, among the most and least corrupt countries. Result of this shows that among the least corrupt countries, remittances do not appear to increase corruption but, among most corrupt countries, it significantly promotes corruption. Findings of this study are robust to different samples specifications, to regional effects and to the alternative econometric techniques.

Suggested Citation

  • Muhammad Tariq MAJEED*, 2016. "MIGRANT REMITTANCES AND CORRUPTION: An Empirical Analysis," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 26(1), pages 15-41.
    • Handle: RePEc:pje:journl:article16janii
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    References listed on IDEAS

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    1. Ronald MacDonald & Muhammad Tariq Majeed, 2011. "Causes of corruption in European countries: history, law, and political stability," Working Papers 2011_24, Business School - Economics, University of Glasgow.
    2. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
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    Cited by:

    1. Courage Mlambo & Forget Kapingura, 2020. "Remittances and Economic Development: Evidence from SADC Countries?," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 8(4), pages 261-273.
    2. Luis Gautier & Puneet Vatsa, 2023. "Corruption, remittances, and public goods: A unified framework," Bulletin of Economic Research, Wiley Blackwell, vol. 75(4), pages 1078-1085, October.
    3. Anam Alamdar & Munazza Ahmed & Atif Khan Jadoon, 2022. "Do Migrant Remittances Promote Corruption in Pakistan?," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 4(1), pages 88-97, March.

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    Keywords

    Empirical Analysis; MIGRANT REMITTANCES;

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