Cracking the Corruption Code: The Case of Afghanistan

This paper is about a very complicated and multifaceted issue of corruption. The main purpose of this paper is to find the impact of development indicators which are political stability and violence, government effectiveness, regulatory quality, rule of law, voice and accountability on the control of corruption in Afghanistan. Furthermore we are interested to know the direction of causality among these variables. The data is analyzed through ordinary least square regression method. Johansen test is applied for cointegration and to find the causality we have applied the Granger causality test. Political Stability and violence, government effectiveness and voice and accountability have shown very strong results and can have higher impact. Policy recommendations are made at the end of the paper