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The Impact of Corruption on Economic Development of Bangladesh: Evidence on the Basis of an Extended Solow Model
Stockholm University, Faculty of Social Sciences, Department of Economics.
2010 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The main objective of this thesis is to empirically investigate the impact of corruption on the economic development of Bangladesh using annual time series data for the period of 1984-2008. According to my knowledge this is the first attempt to apply a multivariate approach toexamine the relationship between GDP per capita and corruption for Bangladesh using time series data.I have tested the long run relationship between corruption and real GDP per capita for that time span using ARDL Bounds method for co-integration using International Country Risk Guide (ICRG) corruption index as a proxy to measure the level corruption in Bangladesh. The results of co-integration test confirms that there is a long run relation among corruption, GDP per capita and other determinants of GDP over this period. The long run estimates indicate that corruption has direct negative impact on per capita GDP i.e. economic development of Bangladesh. It shows that a 1% increase in the level of corruption during this period has resulted in about 10% reduction in per capita GDPof Bangladesh. It means that corruption is affecting the economic growth of Bangladesh adversely. In other words that Bangladesh could achieve faster economic development if it could curb widespread corruption.

Place, publisher, year, edition, pages
2010. , 43 p.
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-52804OAI: oai:DiVA.org:su-52804DiVA: diva2:389131
Presentation
(English)
Uppsok
Social and Behavioural Science, Law
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Examiners
Available from: 2013-07-03 Created: 2011-01-18 Last updated: 2017-04-10Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
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Output format
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