IS THERE A LINK BETWEEN CORRUPTION AND POVERTY IN TURKEY TESTING EMPIRICALLY


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Çiğdem G., Kara F., Aydın A., İmre S.

12. Uluslararası İstanbul Sosyal ve Beşeri Bilimlerde Bilimsel Araştırmalar Kongresi, 21 - 23 Ocak 2023, ss.206

  • Yayın Türü: Bildiri / Özet Bildiri
  • Sayfa Sayıları: ss.206
  • İstanbul Gelişim Üniversitesi Adresli: Evet

Özet

There is a great deal of discussion surrounding two important facts: poverty, which has social and economic elements and historical roots that go back millennia, and corruption, which exists everywhere on earth but is most prevalent in various forms in developing nations. This study’s objective is to determine whether there is a connection between these two incidents. The Barro and Hanke Misery Index, which is used to assess poverty, was calculated for the period 2014:01-2022:10 with Turkey—one of the nations that has lost the most points in the Corruption Perception Index over the past ten years—in mind. For this study, the Corruption Perception Index was translated from annual data to monthly data by correlating with inflation rates. And numerous analyses were performed on these indexes. The Barro and Hanke Misery Index is a two-option qualitative variable that can have a value of either 1 or 0, based on annual increases and declines. The quantitative variable known as the Corruption Perception Index is regarded as an independent variable. The Logit model, one of the models with qualitative dependent variables, was utilized in the analysis because the dependent variable is a qualitative variable. First, the stationarity of the series was ascertained using the Augmented Dickey Fuller test, the Phillips-Perron unit root test, Narayan and Popp (2010), and Lee-Strazicich (2003) unit root tests with two structural breaks. The corruption perception index coefficient, LR test statistics, and McFadden R2 were determined to be statistically significant according to the results of the Logit model. The Barro and Hanke Misery Index tends to rise when the perception of corruption declines, according to results from the Logit model, one of the models with qualitative dependent variables. In other words, the increase in corruption causes an increase in poverty and deterioration of the economy in Turkey. According to empirical studies, the Logit value was reduced by 18.2 units for every unit higher in the Corruption Perception Index. This research contributes to the literature because of the variables it uses and its empirical method.