
Barcode

Preface
This paper is an output of the independent empirical research undertaken to study the impact of financial crime on the Indian economy. Though there are other studies undertaken, as mentioned at the start of this paper, i.e., study undertaken by Wheeler and Mody (1992) and by Shang-Jinn Wei in 2000 regarding establishing relationship between foreign investment and host country’s risk factor, there is no such study undertaken for India which empirically determine the impact of financial crime on the Indian economy. The research undertaken by Amahalu Nestor Ndubuisi; Abiahu Mary-Fidelis Chidoziem; Okika Elochukwu Christian & Obi Juliet Chinyere titled – “Effect of Money Laundering on Nigerian Economy” is worth mentioning which followed similar methodology as used in this paper. The research paper was published in Research Journal of Financial Sustainability Reporting in 2016.
The paper used the statistical tool of Pearson Correlation Coefficient to determine the relationship between financial crime and the key socio-economic indicators of the Indian economy. Four hypotheses were tested with an objective to empirically determine the relationship between financial crime and the key socio-economic indicators. These four hypotheses assumed that financial crime does not adversely impact the key socio-economic parameters of the Indian economy. However, the testing outcomes of these four hypotheses noted that the Pearson correlation coefficient is in the range of (-) 1 to 1 evidencing the positive correlation between the financial crime and the four socio-economic key economic indicators of the Indian economy. Based on the correlation coefficient determined, all the four hypotheses are rejected and it is concluded that there is no impact of financial crime on the key socio-economic indicators of the Indian economy.
References Links
- Department of Revenue (DoR). Final Black Money – https://dor.gov.in/sites/default/files/FinalBlackMoney.pdf
- Government’s White Paper on Black Money Press Release, by Income Tax Department, Government of India. May 2012 – Press Release: Government’s White Paper on Black Money (incometaxindia.gov.in) : https://incometaxindia.gov.in/Communications/Circular/910110000000000365.htm
- Gross Fixed Capital Formation (% of GDP) – India, World Bank, Gross fixed capital formation (% of GDP) – India | Data (worldbank.org) :
https://data.worldbank.org/indicator/NE.GDI.FTOT.ZS?end=2022&locations=IN&start=2012 - India Crime rate & statistic 1990-2024 – https://www.macrotrends.net/global-metrics/countries/IND/india/crime-rate-statistics
- India takes the third spot in billionaire population. – https://cafemutual.com/news/industry/31822
- Inequality rising since 2000s, top 1 percent in India holds 40 percent wealth. –
https://frontline.thehindu.com/news/inequality-rising-since-2000s-top-one-per-cent-in-india-holds-40-per-cent-wealth–world-ineqality–lab-study-ambani-adani-/ - Interpreting Correlation Coefficients. – https://statisticsbyjim.com/basics/correlations/
- GDP Of India: Current And Historical Growth Rate, India’s Rank in The World. https://www.forbesindia.com/article/explainers/gdp-india/85337/1
- Money Laundering, by United Nations Office on Drugs and Crime (UNODC), Overview (unodc.org) : https://www.unodc.org/unodc/en/money-laundering/overview.html
- Mutual Evaluation of India: 8th Follow-up Report. 2013. Financial Action Task Force. Mutual Evaluation of India: 8th Follow-up report (fatf-gafi.org) :
https://www.fatf-gafi.org/content/dam/fatf-gafi/mer/India_FUR8_2013.pdf.coredownload.pdf - (Maitreesh Ghatak et al., 2022). Trends in Economic Inequality in India. September 2022. Trends in Economic Inequality in India | The India Forum :
https://www.theindiaforum.in/economy/trends-economic-inequality-india - 12. Pathik Shah, Socio-economic Impact of Money Laundering, AML UAE Compliance Made Easy, Socio-economic impact of money laundering – AML UAE #1 Best :
https://amluae.com/socio-economic-impact-of-money-laundering/