Evidence Of Corruption
A study of the factors: Empirical evidence for Corruption, income levels and employment opportunities in an Indian perspective.
Introduction
Corruption is defined as a form of dishonest or unethical conduct by a person entrusted with a position of authority, often to acquire personal benefit. It involves many activities like embezzlement and bribery. Corruption is found to be rampant in many developing countries like Libya, Uzbekistan, Sudan etc. whereas it is not so widespread in many developed countries like Denmark, Finland, and Sweden etc. In India, corruption is a fairly widespread phenomenon and it is still showing an increasing trend over years, despite the rise in human development, disposable income and employment.
Objective
In this
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The paper suggests that the bribery in the country will temporarily reduce if there is unemployment due to cyclical turndown resulting in the decline of income of target population. But if unemployment is due to structurally high joblessness then there is a positive correlation .The research study says one percentage increase in the employment rate in the country will increase the risk of corruption by 0.1 percentage points.
The research study focuses on how corruption and Human development are related . It can be so obvious that corruption and Human development are negatively correlated but here the research details how cultural norms in different countries also determines the relation between corruption and Human development. Based on how we define corruption and how we criticize the norms corruption can promote or demote Human development.
Data & Variable definitions/Data
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As a measure of Human Development in India, we are using Human Development Index. The source of data we are using is the Human Development Report, published by United Nations Development Program, once every year. The personal disposable income data is taken from the Handbook of statistics on Indian Economy, published by Reserve Bank of India (RBI), India’s central banking institution. The employment data((in millions) was found by adding the public sector employment and private sector employment, taken from the Handbook of statistics on Indian economy, published by Reserve Bank of India.
Corruption and income
Proposed hypothesis
H1: There is a positive relationship between Corruption and disposable income in Indian context.
According to Brazilian journal of political economy 32(2), 2012 there is positive relationship between the income level and the corruption in the developing economy. With the objective of verifying this correlation in indian context. We are using the corruption perception index (CPI) which is prepared by the Transparency International (index varies between 0 to 10 with 0 for the most corrupt nation). The simple regression lines plotted figure 1 between corruption and income levels reveals the corruption
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