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The Causal Relationship between Corruption and Poverty in ASEAN: a General Method of Moments/Dynamic Panel Data Analysis

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  • Purwantini Rahayu, Ina
  • Widodo, Tri

Abstract

This paper examines the Granger causal relationship between corruption and poverty with panel data of 9 ASEAN countries during the period of observation 2005-2009. It uses the generalized method of moments/dynamic panel data (GMM/DPD) and focuses on capability poverty using human development index (HDI). The major results show that poverty does not affect corruption meanwhile corruption causes poverty. There is unidirectional causality, from corruption to poverty.

Suggested Citation

  • Purwantini Rahayu, Ina & Widodo, Tri, 2012. "The Causal Relationship between Corruption and Poverty in ASEAN: a General Method of Moments/Dynamic Panel Data Analysis," MPRA Paper 78328, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:78328
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    File URL: https://mpra.ub.uni-muenchen.de/78328/1/MPRA_paper_78328.pdf
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    References listed on IDEAS

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    1. Menno Pradhan & Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, "undated". "Measurements of Poverty in Indonesia: 1996, 1999, and Beyond," Working Papers 422, Communications Section.
    2. Vito Tanzi, 1998. "Corruption Around the World: Causes, Consequences, Scope, and Cures," IMF Staff Papers, Palgrave Macmillan, vol. 45(4), pages 559-594, December.
    3. Mr. Vito Tanzi, 1998. "Corruption Around the World: Causes, Consequences, Scope, and Cures," IMF Working Papers 1998/063, International Monetary Fund.
    4. Negin, Vahideh & Abd Rashid, Zakariah & Nikopour, Hesam, 2010. "The Causal Relationship between Corruption and Poverty: A Panel Data Analysis," MPRA Paper 24871, University Library of Munich, Germany.
    5. Léonce Ndikumana, 2006. "Corruption and Pro-Poor Growth Outcomes: Evidence and Lessons for African Countries," Working Papers wp120, Political Economy Research Institute, University of Massachusetts at Amherst.
    6. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Ambar, Rabnawaz, 2015. "Corruption, Inequality and Economic Growth," MPRA Paper 70375, University Library of Munich, Germany, revised 2015.
    2. Joko Mariyono, 2012. "Corruption and welfare: A simple econometric across countries analysis," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 4(1), pages 63-75, April.
    3. Muhammad Shahid Hassan & Samra Bukhari & Noman Arshed, 2020. "Competitiveness, governance and globalization: What matters for poverty alleviation?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 3491-3518, April.
    4. Adjei, E.A. & Amoabeng, K.O. & Ayetor, G.K.K. & Obeng, G.Y. & Quansah, D.A. & Adusei, J.S., 2022. "Assessing the impact of hydro energy project on poverty alleviation: The case of Bui Dam in Ghana," Energy Policy, Elsevier, vol. 170(C).
    5. Gancho Ganchev & Vladimir Tsenkov & Mariya Paskaleva, 2023. "Corruption in Bulgaria: Context, Factors and International Comparison," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 587-620.

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    More about this item

    Keywords

    Corruption; Poverty; Panel Data Analysis; Causality;
    All these keywords.

    JEL classification:

    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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