Impact of Crimes on Economic Growth of Pakistan, Bangladesh and India using individual and Panel Data

Abstract

The purpose of this research paper is to study the detailed dynamics of economic and financial crimes of Pakistan, Bangladesh and India. Our econometric modelling focuses on the impact of the vector of financial and economic crime proxies upon economic growth of Pakistan, Bangladesh and India using data of individual country and then Panel data. In accordance with the reviewed literature, for our sample of south Asian countries, Crime (corruption and shadow economy) have a negative effect upon the vector of development proxies (Economic growth). I have estimated the relationship between GRP and CRP, GRB and CRB and GRI and CRI. I have then estimated the relationship between CRP, with, YURP and INFP, Similarly I have estimated the relationship between CRB with INFB, YURB. Similarly, I have estimated the relationship between CRI, with INFRI, YURI. Finally, I have estimated GR with CR using panel data. Then I estimated CR with INFR and YUR. Governmental policies on economic prosperity and societal wellbeing should focus on reducing corruption and shadow economy, in order to favour benefits in the field of economic development. World bank data denotes crime rate as economic and financial crimes.