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2022 | OriginalPaper | Chapter

Corruption and Economic Growth: Empirical Evidence from BRICS Nations

Authors : Ashmita Kesar, Pabitra Kumar Jena

Published in: Studies in International Economics and Finance

Publisher: Springer Singapore

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Abstract

The present study seeks to examine the impact of corruption, political stability, and trade openness on economic growth in BRICS during the period 2002–2018. It has been shown that political stability and trade openness appear to improve economic growth when the Augmented Solow Model is used as a theoretical framework and the Panel Autoregressive Distributed Lag Model (ARDL) is used as an empirical model. However, the inverted U-shaped relationship between corruption and economic growth is validated as corruption increases economic growth in the long run to a certain level. After that, it downbeats economic growth. This finding of the paper provides new insight into the relationship between corruption and economic growth. Finally, this study provided policy recommendations for reducing corruption and accelerating economic growth in the BRICS countries.

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Percentile rank where 0 correspond to most corrupt and 100 to least corrupt.

Political stability and absence of violence/terrorism measures the perception of likelihood of political stability where 0 represent the lowest rank and 100 highest rank.

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Title: Corruption and Economic Growth: Empirical Evidence from BRICS Nations
Authors: Ashmita Kesar
Pabitra Kumar Jena
Publisher: Springer Singapore
Book: Studies in International Economics and Finance
Print ISBN: 978-981-16-7061-9

Electronic ISBN: 978-981-16-7062-6

Copyright Year: 2022
DOI: https://doi.org/10.1007/978-981-16-7062-6_10