Does corruption incre

ase income inequality

in Bangladesh
😠😠😕presented by.....
1. Ikramul Hoque
2. Shaiful Islam
3.Akramul Hasan
 Abstract
This study will show the relationship between corruption and income
inequality in Bangladesh. Bangladesh is one of the fastest developing
countries in the world. But the country is suffering from severe corruption.
Corruption is increasing income inequality in the country and this is making
the struggle of the poor people even harder. In line with the “inequality trap”
thesis, countries with higher levels of income inequality evince a higher
degree of perception of corruption and, in correspondence with the
unfairness thesis, that people who believe that public officials treat them
fairly are less likely to perceive corruption to exist. Combining these two
explanations, we employed a multilevel model to examine whether the
negative correlation between fair treatment and perceptions of corruption
vary in accordance with the level of country income inequality. The results
indicate that the link between these variables is weaker in less equal
countries than in more egalitarian countries. In unequal countries, fairness
does not matter quite so much for corruption perceptions.
Background of the study
This is what the previous researches say,
What is Corruption?
The misuse of public office
for private gain, including
but not limited to:
-Embezzlement
-Nepotism
-Bribery
-Extortion
-Influence peddling
-Fraud
Forms of corruption

Most of the corruption pratices in

BD falls under the two major
categories:

1. Political or grand corruption

2. Administrative or petty
corruption
What happened to 'The farmers bank?
What's about the pillows bought for
'The Rooppur Nuclear Powerplant'?
What is income inequality?

Income inequality is an extreme disparity of

income distributions with a high concentration of
income usually in the hands of a small percentage
of a population.
 Relationship between corruption
and income inequality
The literature points to the conclusion that corruption,
by itself, does not produce Income inequality . Rather,
corruption has direct consequences on economic and
governance factors, intermediaries that in turn
produce income inequality .
Thus, the relationship examined by researchers is an
indirect one.
Is corruption good for the economy?
Some researchers say, corruption 'greases
the wheel of the economy'
Problem statement

Corruption in Bangladesh has been a continuing

problem. According to all major ranking institutions,
Bangladesh routinely finds itself among the most
corrupt countries in the world.Transparency
International's 2017 Corruption Perception Index ranks
the country 143rd place out of 180 countries. The
public sectors conducted by the Government are the
most corrupted sectors of the country.
Research questions

In this study, we will try to answer of the

following questions:
(i) What is corruption and why people engage in
corruption?
(ii) What kind of environment helps corruption to
flourish?
(iii) In which sector corruption is most prevalent?
( iv) Does income inequality exist in BD?
(v) Does corruption affect income inequality?
If does, to what extent.
Objective of the research
• The main objective of this study is to find out :
•
• 1. The degree of corruption and income inequality in
Bangladesh.
•
• 2. Does corruption affect income inequality in Bangladesh.

• 3. Is corruption bad for the economy.

Has income inequality made it even harder for the lower and
lower middle income people to survive in the country
Hypothesis of the study
Hypothesis 1 : Corruption does't affect income
inequality

Hypothesis 2 : Corruption affects income

inequality

Hypothesis 3: Corruption is bad for the

economy

Hypothesis 4: Income inequality makes it

harder to survive for the poor people
Research methodology
For quantitative studies of corruption and inequality,
there are two difficult issues: data quality and
endogen. First, both corruption and inequality are
difficult to measure. Measuring corruption is
inherently difficult because most corrupt acts are
conducted secretly. Due to the difficulty in
objectively measuring corruption, measures of
“perceived corruption” such as Transparency
International’s Corruption Perceptions Index.
 Variables :
(i) Corruption - Independent
(ii) Income inequality - Dependent
1. It’s a quantitative research
2. Research strategy: Survey Method
and archive research.
3. Measurement of corruption
4. Measurement of income inequality
What Is the Corruption Perceptions Index (CPI)?

The Corruption Perceptions Index (CPI) is an index that

scores countries on how corrupt their governments are
believed to be. The CPI is published by Transparency
International, an organization that seeks to stop bribery
and other forms of public corruption.
 The Gini coefficient

The Gini index is a simple measure of the

distribution of income across income percentiles
in a population. A higher Gini index indicates
greater inequality, with high income individuals
receiving much larger percentages of the total
income of the population.
Time and resource scedule
Staff cost 50000 taka
Overhead cost 135000 taka

Consultancy or 45000 taka

professional fees

Equipment 300000 taka

Hardware and 200000 taka
software
Materials 10000 taka
Travels and expenses 60000 taka

Publication cost 20000 taka

 Ethical issues

No plagiarism will be
done

We will not collect any information on

corruption of any particular person
Significance of the study
Corruption and income inequality! I think it's very well-
known to contemporary
world and also in Bangladesh. World wide many
researcher have
been working on this topic they developed different
theory, concept,
causes, impacts, consequences of corruption according
to their
countries interest or perspective. But having enough
resources in Bangladesh very few research have been
conducted on this topic. I think our research is valuable
in this case.
References:

Andres, A., & Ramlogan-Dobson, C. (2018). Is corruption

really bad for inequality?

Evidence from Latin America. Journal of Development

Studies, 47(7), 959–976.
doi:10.1080/00220388.2010.509784

Bandyopadhyay, S., & Skoufias, E. (2015). Rainfall variability,

occupational choice, and welfare in rural Bangladesh. Review
ofEconomics of the Household, 13(3), 589–634.
doi:10.1007/s11150-013-9203-z