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Article
Publication date: 4 July 2016

Girijasankar Mallik and Shrabani Saha

This paper investigates the corruption-growth relationship in a sample of 146 countries for the period – 1984-2009. While negative effects of corruption on growth have drawn…

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Abstract

Purpose

This paper investigates the corruption-growth relationship in a sample of 146 countries for the period – 1984-2009. While negative effects of corruption on growth have drawn economists’ interest in recent years, our main contribution is to examine the effects by employing the hierarchical polynomial regression to evaluate the relationship after controlling economic and institutional factors.

Design/methodology/approach

The results are estimated using panel generalized methods of moments.

Findings

The results challenge some of the findings that negative growth-corruption association in the literature but also provide some new inferences. The findings reflect that corruption is not always growth-inhibitory; for some countries it is growth-enhancing, which supports the “greasing-the-wheels” hypothesis.

Originality/value

The paper investigates the growth-corruption relationship using panel generalised methods of moments. Our results suggest that a cubic function best fitted the data. The finding suggests that in the medium corrupt countries corruption stimulates growth by reducing red-tape.

Details

International Journal of Development Issues, vol. 15 no. 2
Type: Research Article
ISSN: 1446-8956

Keywords

Article
Publication date: 6 September 2011

Girijasankar Mallik and Anis Chowdhury

The purpose of this paper is to determine the relationship between inflation, inflation uncertainty, growth and growth uncertainty for Australia.

4131

Abstract

Purpose

The purpose of this paper is to determine the relationship between inflation, inflation uncertainty, growth and growth uncertainty for Australia.

Design/methodology/approach

Multivariate EGARCH models has been used to estimate the relationship between inflation, inflation uncertainty, growth and growth uncertainty for Australia.

Findings

Using quarterly data in multivariate EGARCH models, this study finds that both inflation uncertainty and output uncertainty have negative and significant effects on output growth. The paper also finds that, while inflation uncertainty has a positive and significant effect on inflation, output uncertainty has a negative and significant effect on inflation. The study uses a newly constructed oil price dummy as a control variable and finds that oil price changes significantly increase inflation uncertainty. The study also finds that inflation uncertainty and the inflation level have both declined since the adoption of a formal inflation‐targeting monetary policy in Australia.

Research limitations/implications

Multivariate EGARCH model can be used to estimate the effects of inflation, inflation uncertainty, growth and growth uncertainty for cross‐country analysis.

Originality/value

This is the first study of the effect of inflation uncertainty and growth uncertainty on inflation and growth in Australia using a newly constructed oil price dummy in a multivariate EGARCH framework.

Details

Journal of Economic Studies, vol. 38 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 1 June 2002

Girijasankar Mallik and Anis Chowdhury

This paper examines the relationship between inflation and real income in Australia, Canada, Finland, New Zealand, Spain, Sweden and the UK which have adopted a “formal” policy of…

4880

Abstract

This paper examines the relationship between inflation and real income in Australia, Canada, Finland, New Zealand, Spain, Sweden and the UK which have adopted a “formal” policy of low or zero inflation target. Using cointegration analysis and a vector error correction model (VECM)), we find that the long‐run relationship between inflation and real income is positive in most cases. We further find that contrary to the belief of new‐classical economics, government expenditure too is positively related to real income in the long‐run.

Details

Journal of Economic Studies, vol. 29 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 1 November 2011

Girijasankar Mallik and Ramprasad Bhar

The purpose of this paper is to establish a link between inflation uncertainty and interest rates for five inflation‐targeting countries.

2898

Abstract

Purpose

The purpose of this paper is to establish a link between inflation uncertainty and interest rates for five inflation‐targeting countries.

Design/methodology/approach

The approach takes the form of a time‐varying parameter model with a Generalized Autoregressive Conditional Heteroskedasticity (GARCH) specification, used to derive impulse uncertainty and structural uncertainty.

Findings

This study attempts to establish a link between inflation uncertainty and interest rates for five inflation‐targeting countries, i.e. Canada, Finland, Spain, Sweden, and the UK. Decomposing inflation uncertainty into two components – impulse and structural, a positive association was found between the expected inflation and interest rates. Structural uncertainty has a positive and significant effect on interest rates for some countries. It has also been found that the long‐run effects of inflation on interest rates are less than unity for the post‐inflation targeting period, which implies that in some respect the Central Bank has been successful in targeting inflation. This has allowed the Central Bank to employ a less restrictive monetary policy in an environment of a credible inflation‐targeting strategy.

Research limitations/implications

Exponential Generalized Autoregressive Conditional Heteroskedasticity (EGARCH) can be used instead of GARCH modelling.

Originality/value

This is the first study that has tried to establish the link between different types of inflation uncertainty and interest rates for the inflation‐targeting countries to see the effect of inflation targeting.

Details

Journal of Economic Studies, vol. 38 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

Content available
Book part
Publication date: 23 May 2023

Ramesh Chandra Das

Abstract

Details

Growth and Developmental Aspects of Credit Allocation: An inquiry for Leading Countries and the Indian States
Type: Book
ISBN: 978-1-80382-612-7

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