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| Helder Rojas, Macavilca Tello Bartolome, Kevin Fernandez and Oscar Cutipa-Luque |
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| ''Dynamic interconnections between corruption and economic growth'' |
| ( 2025, Vol. 45 No.3 ) |
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| This study examines the dynamic relationship between corruption and economic growth, focusing on the transmission mechanisms and contagion channels through which shocks in one country influence economic performance and corruption perceptions in others. Using data from Gross Domestic Product (GDP) and the Corruption Perception Index (CPI), we employ a coupled vector autoregressive model to capture the interactions between these variables. The results show that corruption and economic growth are interdependent across countries, with significant spillovers through trade and investment channels. By integrating graph theory and Granger causality, we build a network of interconnections that illustrates how corruption dynamics in one country can influence others, contributing to the "grease vs. sand" debate. These findings provide insights for designing policies that promote transparency and sustainable economic development. |
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| Keywords: Corruption, Gross Domestic Product (GDP), Granger Causality, Economic Contagion Networks, Complex Systems. |
JEL: C4 - Econometric and Statistical Methods: Special Topics
H7 - State and Local Government; Intergovernmental Relations: General |
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| Manuscript Received : Apr 26 2025 | | Manuscript Accepted : Sep 30 2025 |
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