Analyzing the causal relationship between corruption levels & industrial-economic development

The present scenario have emphasized the need for formal studies testing the conviction that there exists casual relationship between public sector corruption levels and sustained economic and industrial development in the context of international regional groups as the global companies facing the corruption risks are more interested in assessing such corruption-development interlinks at the regional level apart from the cross-country investigation. In this research study, we have attempted to examine the casual interrelationship between the public-sector corruption index and two major development indicators of economic and industrial growth using bivariate correlation and regression analysis based on the arithmetic mean of the five years’ data (2007–2011) calculated for each of the eight SAARC countries. The major findings of the study thus interpreted on the basis of such analysis are presented in related sections.