THE IMPACT OF CORRUPTION AND GOVERNANCE ON POVERTY: A PANEL DATA ANALYSIS

Authors : Mehmet Nacar, Abdullah Özçil, Canan Gamze Bal

Pages : 722-739

Doi:10.17130/ijmeb.1600108

View : 82 | Download : 36

Publication Date : 2025-06-30

Article Type : Research Paper

Abstract :Governance is the process of organizing and directing the principles of management, decision-making mechanisms, resource allocations and interactions of an organization or community. One of the main factors in deterioration of the economy is the weakness of governance. No other action is as damaging to existing economic systems and structures as corruption. With deterioration of the economy and the emergence of income inequality, poverty has become evident in all regions of the world. This study explains the impact of corruption and governance on poverty in terms of corporate governance. The relationship between World Governance Indicators (WGI) published since 2012 covering 157 countries, Corruption Perceptions Index (CPI) and Gross Domestic Product (GDP) data are analysed. Panels Corrected Standard Errors (PCSEs) regression model focuses on the impact of CPI and WGI on GDP. It is concluded in this study that the explanatory power of corruption and governance on GDP dimension of poverty is 59.2%. The results were compared with similar studies from different perspectives and recommendations were presented.
Keywords : Yolsuzluk, Yönetişim, Yoksulluk, GSYİH, Gelir Eşitsizliği.

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