RELATIONSHIP OF CORRUPTION ON ECONOMIC GROWTH

SUBMITTED BY: HAMOOD UL HASSAN

REG NO: FA21-BAF-020

SUBMITTED TO: MAM ASMA IMRAN

 CHAPTER ONE

INTRODUCTION

1.1 Background of the study:

Corruption can have significant negative effects on economic growth by reducing the
efficiency of public institutions, increasing uncertainty and risk, and increasing the cost
of doing business. Studies have shown that the relationship between corruption and
economic growth is complex and depends on various factors, but overall, corruption
has a negative impact on economic growth, especially in developing countries. To
combat corruption, effective institutional reform, and anti-corruption measures are
necessary. (M Ugur, 2011)

1.2 Statement of problem:

The problem is that corruption can have detrimental effects on economic growth, including
reducing the efficiency of public institutions, increasing uncertainty and risk, and increasing
the cost of doing business. These negative effects can be particularly pronounced in
developing countries. The challenge is to develop effective institutional reform and anti-
corruption measures to address this issue and promote sustainable economic growth. (JW
Williams, 1999)

1.3 Purpose of study:

The purpose of studying the relationship between corruption and economic growth is to
better understand how corruption affects economic development and to identify effective
strategies for combating corruption and promoting sustainable economic growth. Ultimately,
the goal of this research is to promote inclusive economic growth and improve the well-being
of individuals and communities.
1.4 Research objective:
1. To identify the various types and causes of corruption that affect economic growth.
2. To examine the relationship between corruption and economic growth across different
countries and regions.
3. To analyze the impact of corruption on key economic indicators such as investment,
productivity, and income inequality.

1.5 Research questions:

The research questions that could be addressed in studying the relationship between
corruption and economic growth could include:
1. What is the extent and nature of corruption in different countries and regions, and
how does it impact economic growth?
2. What are the ethical and social implications of corruption, and how can these be
addressed in policy discussions around corruption and economic growth?

1.6 Research hypothesis:

There are two types of hypotheses in this study which are null and alternative hypotheses.
H0: There is no critical relationship between corruption and the development of the
economy.
H1: There is a critical relationship between corruption and economic development.

1.7 Significance of Study:

The study of the relationship between corruption and the economy is significant as it can
provide valuable insights for policymakers, researchers, and the public on the causes and
consequences of corruption. It can inform policy debates on how to promote sustainable
economic development and reduce poverty, inequality, and social instability. Overall, this
area of research has important implications for public policy, economic development, and
social justice. (NK Ibraheem, 2013)

2 Bibliography
JW Williams, M. B. (1999). Google scholar. From economic liberalization of corruption.
M Ugur, N. D. (2011, June). scholar. From the evidence on the economic growth impact
corruption in low-income countries.
NK Ibraheem, G. U. (2013). google scholar. From corruption and economic development.