Nexus between Corruption and Macroeconomic Indicators in Lower Developing Countries
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Abstract
This study aims to investigate the impact of money supply growth rate, inflation and GDP growth rate, on corruption using the annual data from 2000-2016. The data was collected from World Bank for inflation, money supply, GDP and control of corruption (COC) index. The corruption perception index (COP) index was collected from Transparency International. The relationship between COP and inflation is found to be unidirectional hence COP granger causes inflation but inflation does not granger causes COP. This study revolves around Corruption and it is an important variable that is affecting inflation, and it has caused the need for improvising the fiscal and monetary policies which require an element of anti-corruption policies to combat corruption and inflation.
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