Corruption and Inflation in Agricultural Production: The Problem of the Chicken and the Egg

Paulo Peixoto, Vítor João Pereira Domingues Martinho and Paulo Mourão
Additional contact information
Paulo Peixoto: Department of Economics, Faculty of Economics and Bussines, University of Vigo, 36310 Vigo, Spain
Vítor João Pereira Domingues Martinho: Agricultural School (ESAV) and CERNAS-IPV Research Centre, Polytechnic Institute of Viseu (IPV), 3504-510 Viseu, Portugal

Economies, 2022, vol. 10, issue 11, 1-33

Abstract: Corruption and inflation are two economic problems with serious social consequences. This paper analyzes the link between these two problems, focusing on the case of 19 prices observed for agricultural products in 90 countries since 2000. Using ‘panel data cointegration’ techniques, we conclude that, in most cases, there is a long-term relationship between inflation and corruption. The direction of causality favors the hypothesis that the inflation of agricultural products promotes incentives that lead to an increase in corruption levels. These results have important implications in terms of fighting corruption, giving special attention to controlling inefficiencies in agricultural markets that lead to higher prices that are then tapped into corruption mechanisms.

Keywords: corruption; inflation; production price levels; panel cointegration (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7099/10/11/268/pdf (application/pdf)
https://www.mdpi.com/2227-7099/10/11/268/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:10:y:2022:i:11:p:268-:d:956726

Access Statistics for this article

Economies is currently edited by Ms. Adore Zhou

More articles in Economies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().