Roots Of Deceit: Probing The Underlying Factors Of Corruption

Abstract

The economic consequences of corruption are undeniable. A fertile ground for corruption is created by institutions riddled with loopholes, inadequate oversight, and a lack of transparency. Concentrated power, coupled with a lack of checks and balances, creates opportunities for abuse and self-enrichment. This unethical deep-rooted evil has several dimensions, however this study evaluated Economic dimension by GDP Growth, Investment profile, Trade Openness and Income Inequality (GINI coefficient), Political dimension by Government Stability, Law and Order condition, Democratic Accountability, and Bureaucracy Quality, whereas to evaluate the Societal dimension proxy variable of population growth is used. To find the relationship between variables, Dynamic ordinary least square (DOLS) and Canonical Cointegration Regression (CCR) is used. Before applying the method of DOLS and CCR, features of the series were explored applying the Unit root and [1]Cointegration test.  In reference to study results it is suggested that implementing wage reforms to address the issue of low wages and high-income inequality, working towards improving bureaucratic quality and economic freedom, implementing policies that promote political stability and strengthen institutions are inevitable. Reevaluate policies related to trade openness, especially considering the surprising result showing an increase in corruption with more open economies is required. Implementing initiatives that promote ethical behavior, build trust within society, and reinforce positive cultural values to create an environment less conducive to corrupt practices is also recommended. Establish a robust system for continuous monitoring and evaluation of anti-corruption policies is concluding resolution to this malicious .