Corruption – Why and How; a Moral-Economic Analysis

Abstract

Corruption emerged as one of main socio-political and economic problems of the countries which lead fortitude of its governments. No doubt, corruption has major implications for the distribution of income and wealth in the country, for its leading to specific patterns of expenditure and investment which leads to the illegal generation of wealth and the black money economy. As a consequence, in this paper we analyzed those significant causes of corruption on which insufficient attention has been given and ignored to the social dimension of emerging economic issues, despite the fact that social and economic issues are interlinked. Pertaining to this, we provided strong evidence of the existence of a causal link of corruption by presenting exploratory scholarship estimates using in-depth interviews of our sample households as instruments in the ground level, and by showing that our explanatory factors are actual predictors of corruption. In contrast to the previous literature, we found strong evidence in favor of the theory that institutional amelioration on moral-economic basis reduces corruption. Hence there is a growing recognition about making different and essential approach theoretically on the subject of elucidation of corruption with the intention of social institutions in moral-economic dimension.