Interaction of inflation and corruption in developing markets in the context of technological changes

Corruption being a multi-layer phenomenon has its direct and indirect effects on the economic life in different spheres. Taking into account this circumstance, we made an attempt to reveal the existing connections and dependence between corruption and inflation. Data of 161 countries were included in the carried-out analysis on inflation, corruption perceptions index (CPI), control of corruption index (COC), as well as Freedom of Corruption Index (FFC), whereas the countries have been divided into four large groups according to per capita GDP. Modern tendencies of the given groups of countries having strong foundations of institutional control or corruption «restraints» have been studied in this context. The correlation analysis has been carried out to study the dependence of corruption and inflation according to income groups. Research of previous experiences and results of the carried out analysis indicate that implementation of the efficient policy aimed at control of manifestations of corruption presumes some high level of institutional development in countries. Results of the correlation analysis prove the inverse relationship between corruption and inflation as well as its weaknesses for all income groups in countries

Developing country · Development economics · Economic freedom · Economic growth · Economics · Geography · Language change · Macroeconomics · Market economy · Monetary economics · Per capita · Sociology · Corruption and Economic Development · Economic Growth and Development

• Corruption and economic growth

  Open Access•Klaus Gründler, Niklas Potrafke•European Journal of Political…•2019

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