Nexus between Democracy, Corruption, and Income Inequality in South Asia

Abstract

his study explores the interplay between corruption, democracy, and income inequality in South Asia, analysing data from 2012 to 2022. It incorporates variables from the Transparency International Corruption Perception Index (TI-CPI), Democracy Index by the Economist Intelligence Unit (EIU), and measures of income inequality, in addition to other control variables relevant to political governance and economic performance. Utilising the Feasible Generalised Least Squares (FGLS) approach, the research reveals that democracy, regulatory quality, income inequality, and population growth are associated with increased corruption, while effective corruption control, rule of law, and economic growth contribute to its reduction in the region. These findings offer valuable insights for policymakers on enhancing democratic structures, governance efficiency, and the rule of law to combat corruption in South Asia.