Abstract
This study aims to investigate the causal linkages between corruption and three of its main determinants comprised of income level, inflation and income inequality in Pakistan over the years 1980-2013. The findings support that inter alia inflation causes more corruption while income rise goes the other way around. Overall the impact of extant rampant corruption implies for the higher economic growth as sin qua none of lowering inflation and therein improving income inequalities in Pakistan. On these bases, it is suggested that policy formulation to curb corruption level needed to be grounded in accord with the economic policies of the country. Moreover, there is indication of tradeoff between lowering corruption and inflation implying for the requisites of ingenuity in pragmatic approach by the extant government apparatuses, ceteris paribus.
Keyword(s)
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