Most of the literature I have read discusses the impact of anti-money laundering regulations on growth. Is there a way I can estimate corruption and then how is that money made licit through money laundering activities. Also, I would like to measure its impact on economic growth. I want to do it quantitatively using some models. I have read about Walker Gravity model to estimate money laundering, but cannot seem to connect everything together and come up with specific objectives.
To evaluate the legacy and root cause of corruption, money laundering and its impact on economic growth of Pakistan.
It is only my informed guess that rent-seeking and money laundering are closeley connected, e.g. land value speculation in big Pakistani cities and the subsequent monetary flow can surely be brought into a statistical banking analysis (land as collateral vs. payments). This methodical focus would be on 'creative' book-keeping and 'number artistry', concerning real estate deals in urban density.
Part of the challenge you are likely to encounter with an empirical model where money laundering and corruption are key variables is that this activity is often intentionally hidden. Obtaining accurate data is likely to be challenging.
Thank you so much for input. I too feel it is challenging in terms of model and the data.
Yes, it is better to limit the investigation into a solid (tangible) case study and to learn from the example. Experts in serious banks are getting terrible head aches from the money laundering merry-go-round and one thing is sure: it inhibts growth.
Getting micro level data on corruption in terms of the amount of bribes, embezzlement in different government sectors or by politicians is difficult. But to start with you may use macro time series data to see the impact of corruption on economic growth and productivity in Pakistan, and the channels of the (potential negative) impact through for example, inflating public investment but reducing its quality. For this, there are international data available in Transparency International, International Country Risk Guide, or World Bank Governance Indicators, etc.
You may read the following paper:
http://onlinelibrary.wiley.com/doi/10.1111/manc.12068/epdf
You are interested in studying corruption, money laundering and their impacts on economic growth of Pakistan. You want the possible research objectives. My response is as follows. I think we are putting the horse before the cart. Good research procedure starts with the problem. What is your research problem? and how serious is it in terms of magnitude? This is not yet clear. After defining your research problem, I suggest you outline your study objective in line with your research problem. Other aspects of your study (methodology etc) should be guided by your reviews of literature.
- Badges
- Science topic
- Similar topics
- Geoscience
- Asia
- India