The DOI matches its Crossref record; 45 of the 45 references it cites were found in a registry or an index.
Economic growth, corruption, and financial development: Global evidence
Abstract
Abstract Using panel cointegration and panel error correction models from 2002 to 2016, this paper investigates the relationship among corruption, economic growth and financial development in 142 countries in the long run. In order to make the conclusion more targeted, the samples are further divided into developed countries subsample and developing countries sub-sample. The results confirm that between GDP, COR and BM, a long-term cointegration relationship exist in the full sample and the sub-samples of developing countries. Moreover, in the full sample and in developing countries subsample, the panel FMOLS estimations indicate that economic growth has a positive effect to financial development, whereas corruption has a negative effect. The VECM shows the causal relationships exist between economic growth to financial development and corruption to financial development in the long run. But for developed countries the causalities are absent. The policy implication is that, for developing countries, boosting economic growth and can help promote financial development but curbing corruption has adverse effects on financial development. The policy effects are related to the prosperousness of different countries. Overall, developing countries can carry on policies to advance financial development through promoting economic growth and indulging corruption temporarily, while developed countries may have to find other channels.
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Cited by
Khan, I., Hou, F., Irfan, M., Zakari, A., & Le, H. P. (2021) · Renewable and Sustainable Energy Reviews · doi:10.1016/j.rser.2021.111157 · Cited by 363
Natural resources tax volatility and economic performance: Evaluating the role of digital economy
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Ekanayake, E. M., & Thaver, R. (2021) · Journal of Risk and Financial Management · doi:10.3390/jrfm14100489 · Cited by 43
“Song et al. (2021), employing panel cointegration, investigated the consequences of economic growth and corruption on financial development in 142 advanced and developing countries between 2000 and 2016.”
MethodAfridi, M. A., Khan, I., Rahman, H. U., & Khan, M. R. (2026) · Journal of Economic and Administrative Sciences · doi:10.1108/jeas-05-2024-0143 · Cited by 6
Metadata
- Authors
- Song, C.-Q., Chang, C.-P., & Gong, Q.
- Venue
- Economic Modelling
- Publisher
- Elsevier BV
- Published
- 2021-01
- Volume
- 94
- Pages
- 822-830
- ISSN
- 0264-9993 (ISSN-L)
- OpenAlex
- W3008519155
- Cited by
- 265
- References
- 45
- FWCI
- 54.53
- Type
- journal article
- Language
- en
- Open access
- closed
- Licence
- www.elsevier.com/tdm/userlicense/1.0/ (tdm)
- www.elsevier.com/legal/tdmrep-license (tdm)
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