Munich Personal RePEc Archive

The Causal Relationship between Corruption and Poverty in ASEAN: a General Method of Moments/Dynamic Panel Data Analysis

Purwantini Rahayu, Ina and Widodo, Tri (2012): The Causal Relationship between Corruption and Poverty in ASEAN: a General Method of Moments/Dynamic Panel Data Analysis. Published in: Journal of Economics, Business and Accountancy Ventura , Vol. 15, No. 3 (31 December 2012): pp. 527-535.

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Abstract

This paper examines the Granger causal relationship between corruption and poverty with panel data of 9 ASEAN countries during the period of observation 2005-2009. It uses the generalized method of moments/dynamic panel data (GMM/DPD) and focuses on capability poverty using human development index (HDI). The major results show that poverty does not affect corruption meanwhile corruption causes poverty. There is unidirectional causality, from corruption to poverty.

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