Causality between Corruption and Poverty: An application to Western Balkan countries

[Audio] Good morning everyone. Today's presentation will discuss the causal relationship between corruption and poverty in Western Balkan countries as it has been studied from 2013 to 2021. We will explore the results of the dynamic panel system G-M-M estimator as well as the studies from other empirical works. I look forward to discussing this important topic with you. Let's get started..

[Audio] Corruption is a serious issue that has far-reaching consequences for a nation's economic social and political spheres. Examining the Western Balkan region it is apparent that there is a direct correlation between corruption and poverty. By surveying data from 2013 to 2021 it is evident that countries with higher levels of corruption suffer from higher levels of poverty. This data suggests that corruption can be an influential factor in raising poverty levels. Subsequently it can be inferred that reducing corruption can help to alleviate poverty..

[Audio] I will present a research study that investigates the causal connection between corruption and poverty in Western Balkan countries. The study utilizes a dynamic panel system G-M-M estimator to analyze the impacts of corruption on poverty in the region. Different types of corrupted behaviors such as public servants asking for money and favours in exchange for services politicians misusing public money or corporations bribing officials to gain deals are analyzed in the study. I will discuss our findings which may be of interest to the class..

[Audio] Corruption and poverty have a complex relationship and my goal is to examine the links between these two issues. To do so I will look at various studies conducted on the subject and assess the impact of poverty on corruption using data from 154 countries over a 13-year period. Subsequently I will discuss the findings and examine the implications for Western Balkan countries..

[Audio] Corruption and poverty are closely linked with one reinforcing the other in a constant cyclical manner. This presentation will explore the connection between corruption and poverty in Western Balkan countries between 1996 and 2019 based on the panel data provided in Vinayagathasan and Ramesh's (2022) analysis. Their results show that reducing corruption and increasing women's labor force participation have a positive effect on poverty and social welfare. These conclusions can be used to help tackle poverty in the Western Balkan region..

[Audio] Our study reveals a clear correlation between corruption and poverty. More corruption leads to less poverty and the results from the G-M-M dynamic panel system estimator support this hypothesis. Additionally the impact of corruption on poverty is more profound in states with higher unemployment levels. This implies that corruption may be a tool to reduce poverty particularly in countries with severe economic distress..

[Audio] I conducted a study looking at the causality between corruption and poverty in Western Balkan countries using the Corruption Perceptions Index and the Human Poverty Index as my primary sources. The results revealed a strong correlation between poverty and corruption in a number of countries indicating that higher corruption levels can often result in higher poverty levels. I invite you to consider the findings of this research and come to your own conclusions..

[Audio] We take a look at the estimation results for our model in this slide. The table shows a negative relation between C-P-I corruption and poverty as anticipated. Furthermore factors such as rurality and gender are seen to have a noteworthy impact on the relationship. This adds further proof of the association between corruption and poverty and its consequences for the Western Balkan countries..

[Audio] Our research has found a statistically significant relation between corruption and poverty in all equations. The variable of rural population is statistically significant at a 1% level as well as the variables of political freedom stability and lagged inflation. The Wald test confirms that corruption does cause poverty at a 1% level demonstrating corruption can be useful in predicting poverty..

[Audio] A negative correlation between corruption and poverty was found in the Western Balkan countries. Results revealed that higher levels of corruption are associated with more economic financial and social inequality as well as more individuals living above the poverty line. Further analysis showed that the explanatory variables were statistically significant in each of the equations with the Wald tests additionally verifying the significant connection between poverty and corruption..

Thank you!.