Next Article in Journal
Determinants of Related and Unrelated Export Diversification
Previous Article in Journal
Do Technological Innovations Affect Unemployment? Some Empirical Evidence from European Countries
Article Menu

Export Article

Open AccessArticle
Economies 2017, 5(4), 49; doi:10.3390/economies5040049

The Consequences of Corruption on Inflation in Developing Countries: Evidence from Panel Cointegration and Causality Tests

Department of Economics, Necmettin Erbakan University, Konya 42090, Turkey
Department of Economics, Ahi Evran University, Kırsehir 40100, Turkey
Author to whom correspondence should be addressed.
Received: 6 October 2017 / Revised: 20 November 2017 / Accepted: 30 November 2017 / Published: 11 December 2017
View Full-Text   |   Download PDF [290 KB, uploaded 11 December 2017]


Up until the 1980s, studies on corruption were dominated by disciplines of public administration and sociology. In the following years, however, economists have also provided a good amount of research on this issue. According to Transparency International Agency, corruption, which has a negative impact on most macroeconomic indicators, is “the abuse of entrusted power for private gain”. Even though the disruption of corruption causing weak growth and investment rates has long been examined, there is little evidence regarding its impact on inflation. In this study, the nexus between corruption and inflation was investigated for 20 countries over the period 1995–2015. Estimation results indicated that high corruption increased inflation rates, and that there was a unidirectional causal relationship from corruption to inflation for ten countries in the sample. View Full-Text
Keywords: corruption; inflation; heritage foundation; panel data analysis corruption; inflation; heritage foundation; panel data analysis
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Özşahin, Ş.; Üçler, G. The Consequences of Corruption on Inflation in Developing Countries: Evidence from Panel Cointegration and Causality Tests. Economies 2017, 5, 49.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Economies EISSN 2227-7099 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top