Vol. 5, Issue 2 (2019)
Economic literature has tested the relationship between corruption and income inequalities using variety of data sources and techniques but the economic research in this field is a rather young discipline. Theoretical explanations have been given to establish close relationship between corruption and income inequality. The research has convinced that income inequality is one of the factors of corruption but the reverse is not true as the theoretical arguments linking corruption as one of the factors of income inequality are weak and less convincing. In the paper, we made an effort to provide review of the theoretical and empirical studies exploring relationship between economic inequality and corruption. Based on the literature survey, we have summarized the various channels through which the relationship between corruption and inequality works.
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