Original scientific paper
Openness and Corruption: A Time-Series Analysis
Muhammad Zakaria
; Department of Economics, Quaid-i-Azam University, Islamabad, Pakistan
Abstract
The paper empirically examines the relationship between trade openness and the level of corruption in Pakistan using annual time-series data for the period 1984 to 2007. The analysis shows that trade openness negatively affects corruption in Pakistan. The results are robust to controlling for other corruption determining variables and various model specifications. Sensitivity analysis shows that economic development and political liberalization reduce corruption levels. Other explanatory variables i.e. human and physical capital, government expenditures, population, inflation and defense expenditures significantly affect corruption in the expected directions.
Keywords
openness; corruption; economic development; political institutions
Hrčak ID:
78707
URI
Publication date:
1.11.2009.
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