Contours of Impulsive Interactions in Transparency, Economic Stability and Economic Development: An Empirical Analysis

Abstract

In a borderless economy, development mostly dependent on internal economic stability and good governance. Transparency plays a pivotal role in determining the true state of economic development. In developing countries intensity of ethical failure is more than developed countries. For example, the three least corrupt countries in the 2013 Transparency International Corruption Perceptions Index (CPI), such as Denmark and New Zealand holds first position and Finland secured second rank had an average real GDP per capita of $36,700; the 10 most corrupt countries, such as Haiti, Turkmenistan, and Afghanistan, had an average real GDP per capita of $5,100^1a. Evidence conveys most of the cases during study period, first and second position transparency perception rank confined within economically solvent developed countries whose FDI scaled GDP is higher than other countries. Foreign investors attach greater significance on such ethical values in investing their investments in different countries. This study examines the extent of disclosure practices reporting by companies in India and Pakistan, two south Asian nations. It further explores and percolates the impulsive response of economic attributes on economic development of a nation. Descriptive statistics have been employed to express the position of transparency and economic stability in India and Pakistan. Uncorrelated between group design t-test has been used to compare the average levels of ethical failures in two nations. Regression analysis has been employed to investigate the impact economic specific attributes on the level of economic development. The results of group design test shows that there exists a significant inequality in the level of ethical failures in two developing countries. The univariate backward step-wise regression analysis showed economic stability and transparency to be important factor in affecting the extent of economic development of countries.