Corruption and Inflation in Agricultural Production: The Problem of the Chicken and the Egg
Corruption and inflation are two economic problems with serious social consequences. This paper analyzes the link between these two problems, focusing on the case of 19 prices observed for agricultural products in 90 countries since 2000. Using ‘panel data cointegration’ techniques, we conclude that...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-10-01
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| Series: | Economies |
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| Online Access: | https://www.mdpi.com/2227-7099/10/11/268 |
| _version_ | 1797468579687301120 |
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| author | Paulo Peixoto Vítor João Pereira Domingues Martinho Paulo Mourao |
| author_facet | Paulo Peixoto Vítor João Pereira Domingues Martinho Paulo Mourao |
| author_sort | Paulo Peixoto |
| collection | DOAJ |
| description | Corruption and inflation are two economic problems with serious social consequences. This paper analyzes the link between these two problems, focusing on the case of 19 prices observed for agricultural products in 90 countries since 2000. Using ‘panel data cointegration’ techniques, we conclude that, in most cases, there is a long-term relationship between inflation and corruption. The direction of causality favors the hypothesis that the inflation of agricultural products promotes incentives that lead to an increase in corruption levels. These results have important implications in terms of fighting corruption, giving special attention to controlling inefficiencies in agricultural markets that lead to higher prices that are then tapped into corruption mechanisms. |
| first_indexed | 2024-03-09T19:08:26Z |
| format | Article |
| id | doaj.art-82b2ea05179d45829eb315d08f3aeaad |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-03-09T19:08:26Z |
| publishDate | 2022-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-82b2ea05179d45829eb315d08f3aeaad2023-11-24T04:22:23ZengMDPI AGEconomies2227-70992022-10-01101126810.3390/economies10110268Corruption and Inflation in Agricultural Production: The Problem of the Chicken and the EggPaulo Peixoto0Vítor João Pereira Domingues Martinho1Paulo Mourao2Department of Economics, Faculty of Economics and Bussines, University of Vigo, 36310 Vigo, SpainAgricultural School (ESAV) and CERNAS-IPV Research Centre, Polytechnic Institute of Viseu (IPV), 3504-510 Viseu, PortugalDepartment of Economics and NIPE, Economics & Management School, University of Minho, 4710-057 Braga, PortugalCorruption and inflation are two economic problems with serious social consequences. This paper analyzes the link between these two problems, focusing on the case of 19 prices observed for agricultural products in 90 countries since 2000. Using ‘panel data cointegration’ techniques, we conclude that, in most cases, there is a long-term relationship between inflation and corruption. The direction of causality favors the hypothesis that the inflation of agricultural products promotes incentives that lead to an increase in corruption levels. These results have important implications in terms of fighting corruption, giving special attention to controlling inefficiencies in agricultural markets that lead to higher prices that are then tapped into corruption mechanisms.https://www.mdpi.com/2227-7099/10/11/268corruptioninflationproduction price levelspanel cointegration |
| spellingShingle | Paulo Peixoto Vítor João Pereira Domingues Martinho Paulo Mourao Corruption and Inflation in Agricultural Production: The Problem of the Chicken and the Egg Economies corruption inflation production price levels panel cointegration |
| title | Corruption and Inflation in Agricultural Production: The Problem of the Chicken and the Egg |
| title_full | Corruption and Inflation in Agricultural Production: The Problem of the Chicken and the Egg |
| title_fullStr | Corruption and Inflation in Agricultural Production: The Problem of the Chicken and the Egg |
| title_full_unstemmed | Corruption and Inflation in Agricultural Production: The Problem of the Chicken and the Egg |
| title_short | Corruption and Inflation in Agricultural Production: The Problem of the Chicken and the Egg |
| title_sort | corruption and inflation in agricultural production the problem of the chicken and the egg |
| topic | corruption inflation production price levels panel cointegration |
| url | https://www.mdpi.com/2227-7099/10/11/268 |
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