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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JANURAY 2011
VOL 2, NO 9
5. Data Analysis and Interpretation
In this study the ―(Pearson) correlation analysis‖ test has been applied to check the
relationship between corruption and inflation in Pakistan and India 4 . Degree and type of
relationship between any two or more variables in which they vary together over a period is
known as (Pearson) correlation and denoted by ―r‖. A positive correlation exists where the
high values of one variable are associated with the high values of the other variable(s). A
negative correlation means association of high values of one with the low values of the
other(s). Correlation can vary from +1 to -1.
To analyze the relationship between inflation and corruption ―Minitab windows Release 11.12
32 Bit‖ is used in this study.
The test applied to see the association among corruption and inflation in Pakistan has given
the result of r = 0.114 which shows that there is weak association among corruption and
inflation in Pakistan. In the other case (in India) the result is r = 0.683, which shows that there
is strong positive relationship between corruption and inflation in India, which shows that
both inflation and corruption tend to move in same direction, if one increases then other also
increases and vice versa. 3
6. Results and conclusion
This research has been conducted to see the relationship of corruption with inflation in
Pakistani and Indian context. The data regarding inflation in Pakistan and India is collected
from ―Asian Development Bank‖ and ―Federal Bureau of Statistics‖. The data regarding
corruption is collected from the Transparency International. To find out the correlation the
―Minitab Release 11.12‖ is used. The results from this test show that there is little relationship
between inflation and corruption in Pakistan means that whether there is increase in inflation
then corruption will increase a little bit. But result is opposite in Indian context which shows
that there is positive relationship between corruption and inflation, it means that when there is
increase in the corruption; inflation will also increase. So, it can be concluded that higher
corruption will tend to higher inflation in India.
3 (http://www.businessdictionary.com)
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