Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan

Shahbaz Muhammad, Qazi Muhammad Hye () and Shahbaz Shabbir ()
Authors registered in the RePEc Author Service: Muhammad Shahbaz

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of present paper is to investigate the effect of corruption on financial development in Pakistan by using ARDL bounds testing approach to cointegration. The direction of causal relationship between the variables is examined by using VECM granger causality approach. Our empirical findings indicate that corruption promotes financial development. Causality analysis reveals that corruption and financial development are complementary.

Keywords: Financial Development; Corruption; Cointegration (search for similar items in EconPapers)
JEL-codes: B22 (search for similar items in EconPapers)
Date: 2011-03-02, Revised 2011-03-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:29640

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