Abstract :
The debate regarding the influence of corruption on economic growth is increasing. Therefore,
this study examines the impacts of corruption on economic growth of developing South Asian
Economies between 2002-2017 period. The study uses fixed effects, random effects and robust
least square estimators for the empirical estimation. The outcomes show that in developing South
Asian countries corruption is working like grease and enhancing the economic growth.
Nevertheless, the study based on the theoretical and empirical literature recommends these
countries to formulate policies to lower corruption as it harms the institutional quality, adversely
affects the investment decisions of the firms, system of meritocracy, and is considered globally as
a moral decay of the society. These all in turn, in the long run adversely affects the economic
growth.
Keyword :
Corruption, Economic growth, South Asia