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Reassessing the complexities of corruption and inequality: a comparative study of Balkan countries

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Article

Kalaj, Ermira ; Golemi, Ela

SEER. Journal for Labour and Social Affairs in Eastern Europe

2024

27

1

117-128

corruption ; income ; economic growth ; unemployment ; equal rights

South East Europe

Politics

https://doi.org/10.5771/1435-2869-2024-1-117

English

Bibliogr.

"This article analyses the relationship between corruption and income inequality in western Balkan countries in the period from 2012 to 2023. The International Labour Organization, Transparency International and World Development Indicators are the three sources of data used, while the Arellano and Bond (1991) generalized method of moments (GMM) technique is utilised to estimate the correlation between the Gini Index and the Corruption Perceptions Index. The dependent variable is income inequality measured by the Gini Index, while the vector of independent variables is composed of annual GDP per capita growth, the Consumer Price Index, the unemployment rate, openness to trade and the Corruption Perceptions Index. The regression results are univocal for the whole sample. However, corruption is contributing to the increased levels of income inequality in a couple of Balkan countries. The public might have a complex relationship with corruption, but countries could address the issue by institutional strengthening, denouncing corrupt officials, enhancing public transparency and encouraging media independence."

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