Interaction of inflation and corruption in developing markets in the context of technological changes
Economic Annals-XXI: Volume 203, Issue (5-6), Pages: 16-24
Citation information:
Margaryan, A., & Terzyan, H. (2023). Interaction of inflation and corruption in developing markets in the context of technological changes. Economic Annals-XXI, 203(5-6), 16-24. doi: https://doi.org/10.21003/ea.V203-02
Atom Margaryan
PhD (Economics),
Associate Professor,
Armenian State University of Economics;
Head,
Innovation-Institutional Researches Scientific-Educational Laboratory
128 Nalbandyan Str., Yerevan, 0025, Republic of Armenia
atom.margaryan@gmail.com
ORCID ID: https://orcid.org/0000-0002-5998-2227
Haroutyun Terzyan
PhD (Economics),
Armenian State University of Economics;
Senior Researcher,
Innovation-Institutional Researches Scientific-Educational Laboratory
128 Nalbandyan Str., Yerevan, 0025, Republic of Armenia
harutterzyan@yandex.ru
ORCID ID: https://orcid.org/0000-0003-3469-2909
Interaction of inflation and corruption in developing markets in the context of technological changes
Abstract. Corruption being a multi-layer phenomenon has its direct and indirect effects on the economic life in different spheres. Taking into account this circumstance, we made an attempt to reveal the existing connections and dependence between corruption and inflation. Data of 161 countries were included in the carried-out analysis on inflation, corruption perceptions index (CPI), control of corruption index (COC), as well as Freedom of Corruption Index (FFC), whereas the countries have been divided into four large groups according to per capita GDP. Modern tendencies of the given groups of countries having strong foundations of institutional control or corruption «restraints» have been studied in this context. The correlation analysis has been carried out to study the dependence of corruption and inflation according to income groups. Research of previous experiences and results of the carried out analysis indicate that implementation of the efficient policy aimed at control of manifestations of corruption presumes some high level of institutional development in countries. Results of the correlation analysis prove the inverse relationship between corruption and inflation as well as its weaknesses for all income groups in countries.
Keywords: Inflation; Corruption Perceptions Index; Control of Corruption Index; Freedom of Corruption Index; Level of Income; Correlation Analysis; Correlation Indicators
JEL Classification: E31; C40; K40; O11
Acknowledgements and Funding: The work was supported by the Science Committee of the Republic of Armenia in the frameworks of the research project No. 21T-5B313.
Contribution: The authors contributed equally to this work.
Data Availability Statement: The dataset is publicly available in the international databases referred to in the paper.
DOI: https://doi.org/10.21003/ea.V203-02
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Received 20.10.2022
Received in revised form 22.11.2022
Accepted 28.11.2022
Available online 14.06.2023