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Advisor(s)
Abstract(s)
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.
Description
Keywords
corruption inflation production price levels panel cointegration
Pedagogical Context
Citation
Publisher
MDPI