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https://doi.org/10.56556/gssr.v2i1.441 
                                                                  

 

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Appraising the Impact of Rule of Law, Control of Corruption, And Govt. Effectiveness 

on Inflation: An Empirical Case of Bangladesh 

 

G.M. Ikramul Kabir1, Maisha Fairuj2, Sidratul Montaha3, Md. Minhaz Uddin4 

 
1Department of Law, Sheikh Fazilatunnesa Mujib University (SFMU), Jamalpur- 2000, Bangladesh. Email- 
ikramul@sfmu.edu.bd 
2Department of Law, University of Chittagong. Chittagong, Bangladesh. Email: maishafairuj7@gmail.com 
3Department of Political Science, Sheikh Fazilatunnesa Mujib University (SFMU), Jamalpur- 2000, Bangladesh. Email- 
sidratul@sfmu.edu.com 
4Department of Economics, Sheikh Fazilatunnesa Mujib University (SFMU), Jamalpur- 2000, Bangladesh, Email- 
minhaz.uddin452@gmail.com  
 

Corresponding Author: Sidratul Montaha. Email:sidratul@sfmu.edu.com 
Received: 09 January, 2023, Accepted: 25 February, 2023, Published: 27 February, 2023 
 
 

Abstract 

This study is an effective initiative to find out the impact of noneconomic determinants as well as the importance of 

noneconomic determinants on inflation in Bangladesh. Time series data was used from 1996 to 2020. The unit root test, on 

the other hand, indicates that the stationary at the first difference of all variables indicates I(1). Cointegration results ensure 
long-run associations among variables. The econometric methods apply the Generalized Linear Model (GLM) technique 

for measuring the importance of noneconomic determinants for controlling inflation. Findings show the importance of 

noneconomic determinants to controlling inflation, where the controls of corruption, the rule of law, and government 

effectiveness have influenced the reduction of inflation in Bangladesh. It should be focused on improving the quality of 

noneconomic performances and emphasizing the significance of those factors through the implications of rules and 

regulations, digitalization, and ensuring open-door services and accessible information for all consumers of goods and 

services. Further study may consider the other noneconomic as well as macroeconomic determinants that have a large 

contribution to determining inflation in Bangladesh. 

 

Keywords: Control of Corruption; Government Effectiveness; Inflation; Role of Law 

 

 

 

Introduction 

 

In recent years, the price level has been getting higher and 

higher due to the rising rate of inflation, which has become 

a major concern in Bangladesh. Despite being one of the 

fastest-growing economies in the global economy, analysts 

warn that rising inflation and growing prices could hamper 

economic recovery and possibly lead to food shortages in a 

country already hit by severe weather and pandemic-

related disruption. Here, the term “inflation” refers to the 
constant upward movement in the general price level of 

goods and services that causes a reduction in the standard 

level of purchasing power over time. In Bangladesh, the 

current rate of inflation has gone up to 6.17 % from 5.86 % 

in February of 2022, which is the highest rate of inflation 

since October 2021 (Bangladesh Bureau of Statistics 

(BBS) Report, 2022). Such high inflation could seem like a 

temporary blip but can spiral out of control if adequate 

measures are not taken. According to Ashraf et al. (2016) 

and Islam et al. (2022), inflation can negatively impact 

macroeconomic performance because it disrupts the 

exchange mechanism. Asako (1983) also found that 

inflation can cause slower capital accumulation during the 

transition under certain situations. Apart from that, 

inflation adversely affects a country’s underprivileged 

population due to pricey groceries, commodities, and other 

necessities (Rahman et al., 2022; Elahi & Rahman, 2021; 
Rahman & Habib, 2021; Majumder & Rahman, 2022). As 

the prices of essentials go up, so does the cost of living, 

causing suffering for most people. Therefore, inflation 

control is one of the primary objectives of monetary policy 

in Bangladesh.  

 

https://doi.org/10.56556/gssr.v2i1.441
mailto:ikramul@sfmu.edu.bd
mailto:sidratul@sfmu.edu.com
mailto:minhaz.uddin452@gmail.com
mailto:sidratul@sfmu.edu.com


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The reasons behind inflation in Bangladesh are 

multidimensional and dynamic here, both economic 

determinants and non-economic determinants such as the 

rule of law, control of corruption, and government 

effectiveness influence the rate of inflation (Rahman & 
Majumder, 2021; Majumder et al., 2022; Rahman et al., 

2023; Rahman & Majumder, 2022; Rahman & Majumder, 

2020). Irregularities, unrest, and political instability can 

also cause inflation. For example, since economic 

determinants for inflation have always gotten more focus 

compared to the non-economic determinants, the rule of 

law, control of corruption, effective government, and other 

crucial factors were overshadowed despite having an 

impact on controlling inflation. As per Coase (2005), 

economists did not even take into account the importance 

that lies between the economy and the state of law until 

recently. Even though non-economic determinants like 
control of corruption and the rule of law positively affect 

economic growth (Majumdar, 2022). Hence, the impact of 

the rule of law, control of corruption, and government 

effectiveness on inflation is yet to be discussed broadly in 

the research field. Therefore, to combat the adverse effects 

of inflation, maintaining a steady inflation rate while 

considering economic and non-economic determinants is 

now necessary. As per economists, a low-inflation 

environment accelerates economic growth. At the same 

time, a country also needs good governance for its 

economic development (Grindle, 2012; Rocha & Jotty, 
2022). And good governance covers non-monetary aspects 

like the rule of law, control of corruption, and government 

effectiveness (Kaufmann et al., 2009). Ensuring the rule of 

law, controlling corruption and government effectiveness 

will eventually affect a country’s economy, including the 

inflation rate. Thus, in this study, these three key non-

economic indicators have been critically reviewed through 

general analysis and discussion to measure the impact they 

pose on inflation in Bangladesh. No one is above the law in 

a society where the rule of law prevails. It ensures 

accountability of the government as well as obedience to 

regulation by the citizens, providing the rights guaranteed 
by the constitution of a country. The rule of law has a 

direct influence on sustainable economic growth, 

particularly for countries with years of monetary instability 

(Barro, 1996; Fischer, 1984). Therefore, there is a good 

possibility that the rule of law can also influence economic 

growth indirectly by reducing the inflation rate to an 

acceptable level. As economists such as Majumder and 

Rahman (2020); Dilanchiev et al. (2021) put importance on 

transactional rites and conviction as factors in the cost of 

production of goods and services, which depends on 

acquiescence with the rule of law. On the other hand, 
corruption is a threat to the state that hinders the efficient 

operation of the market. Corruption occurs when public 

power is exercised for private gain. Markets get out of 

control due to careless responses by corrupt businesses. 

Corrupt business people are a small group of traders who 

want to create a monopoly, influence, and control over the 

market prices. They sell out or stock up on commodities 

with their syndicate. All these illegal practices in the 

market increase the price level. In this case, the 

government’s policies, commitment, and efforts to 
eradicate corruption can widen the scope for major 

investments, especially from foreign countries where 

control of corruption can influence inflation (Braun & 

Tella, 2004; Uroos et al., 2022). 

According to the World Bank (2021), government 

effectiveness means the government’s commitment to 

policies like public service, civil service, etc., and the 

implementation of such policies. It mainly depends upon 

the ability of a government to make democracy through 

intelligibility, accountability, and public involvement 

(Kosac & Fung, 2014). It builds people’s trust in the 

government. And that eventually leads to law enforcement 
and less scope for corruption, indirectly contributing to a 

reduction in inflation in the country. Besides, the 

government can use a variety of policies and efforts to 

limit inflation, such as preserving law and order, ensuring 

effective resource allocation, resolving budget concerns, 

addressing trade deficits, etc. In addition, the government 

must limit the rate of population growth as well as the 

actions of middlemen to keep inflation under control. This 

study aims to provide and analyze empirical evidence of 

the impact of the rule of law, control of corruption, and 

government effectiveness on inflation in Bangladesh, 
which will aid in the implementation of a low-inflation 

strategy. As a result, considering the legal aspects affecting 

inflation particularly alters the approaches to studying 

inflation factors in general, removing the difficulties of 

excessive reliance on abstract theory. However, given the 

importance of the study in the context of Bangladesh, the 

influence of legal factors to ensure a stable economy with 

low inflation must be brought under the spotlight. The 

study adopted an analytical approach based on secondary 

data from World Bank.  

However, the central focus of this study is to determine 

how non-economic determinants such as the rule of law, 
control of corruption, and government effectiveness 

influence inflation in Bangladesh. The specific objectives 

of the study are as follows: to analyze the importance of 

the rule of law, control of corruption, and govt. 

effectiveness for economic stability and control of 

inflation. Another objective is to measure the impact of the 

rule of law, control of corruption, and govt. effectiveness 

on inflation in Bangladesh. 

The results can also be used to look into non-economic 

factors that contribute to low inflation and the creation of a 

well-organized legal system. As a result, the study makes 
an effort to assess how corruption, the rule of law, and 

government effectiveness affect inflation in Bangladesh, 

which will give the body of literature a new perspective. 

The remainder of the section is divided into five sections: 

Section 2, the literature review; Section 3, the methodology 



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section; Section 4, the result analysis and discussion; and 

Section 5, the conclusion and recommendation. 

 

Literature Review 

 
Over the last decade, the factors of inflation have gotten a 

lot of attention. A lot of research has been done on the 

determinants of inflation. However, most of the studies 

were based on the economic determinants behind inflation. 

Hence, this section of literature is focused on the three vital 

non-economic determinants of inflation, namely: rule of 

law, control of corruption, and government effectiveness, 

to identify the relationship and effect of these determinants 

on inflation. Shevchuk et al. (2020) used annual data for 

the period of 2013 to 2019 of the Rule of Law Index from 

the World Justice Project (WJP) for 40 countries. The 

estimates of cross-regression and panel data found a 
favorable anti-inflationary impact of the rule of law for the 

overall group of 40 countries. Therefore, the rule of law 

can have a positive impact on reducing the high rate of 

inflation. Again, according to Acemoglu (2008), empirical 

evidence discovered that the impact of the rule of law on 

inflation is nonlinear, and the degree of public control over 

power may be an influencing factor in such cases, which 

must be taken into consideration. Moreover, various 

research findings indicate that the central bank can take 

institutional decisions with a stronger anti-inflationary 

impact more independently when democratic institutions 
and the rule of law are present, as in Bodea (2015), 

Nurbayev (2018) and Garriga (2020). As a result, it proves 

that there is a far-reaching consequence of the rule of law 

on inflation in a country. 

A study by Inim et al. (2020) showed that in Nigeria, other 

than money supply, inflation is also determined by other 

factors like corruption, government expenditure on 

security, political instability, etc. The word corruption is 

defined as “the abuse of entrusted power for private gain” 

and more often indicates the abuse of public office for 

private gain (Gray & Kaufman, 1998; Rose-Ackerman, 

1999; Lambsdorff, 2007; Rahman et al., 2022; Islam et al., 
2022). On the other hand, Mauro (1995) demonstrated that 

corruption has negative consequences not just on economic 

development but also on investments and the structure of 

official institutions, based on a study of 68 countries. 

According to Braun et al. (2004), inflation variability can 

lead to higher corruption and less investment. In a sample 

of 75 economically significant countries, the study 

discovered a positive association between corruption and 

inflation fluctuation. As per the findings, a one standard 

deviation increase in inflation over the median increases 

corruption by 12% and decreases economic growth by 0.33 
percentage points, which shows the influence occurs in 

both ways. 

According to Piplica (2011), corruption increased inflation 

after the analysis of 10 transitional economies in Central 

and Eastern Europe. Yousefi (2015) used data from 164 

nations between 1995 and 2010 to test her hypothesis that 

corruption leads to an increase in monetary expansion and, 

therefore, the inflation rate. For the overall sample, the 

study's findings revealed a substantial positive link 

between corruption and inflation. Similarly, the findings of 
Abed (2002), Smith (2007), and Samimi et al. (2012) are 

some who say that there is a positive relationship between 

inflation and corruption. As a result, necessary steps to 

reverse the increase in corruption must be taken to balance 

the inflation rate. In this association, Becker (1974), 

Mookherjee (1989), Png (1995), Besley (1993), and 

Andreoni et al. (1998), among others, have given a theory 

that “control” can reduce corruption. Thus, control of 

corruption can significantly reverse the effect of corruption 

on inflation. 

Apart from the rule of law and the control of corruption, 

government effectiveness also helps maintain social 
equality as well as the economic growth of a country. As 

per Kaufmann et al. (2008), the deciding variables of 

government adequacy are view of the nature of public 

administrations, the nature of common administrations, and 

the level of their autonomy from political tensions; 

furthermore, the nature of strategy planning and execution; 

and the believability of the public authority's obligation to 

such policies. Hence, government effectiveness ensures 

proper distribution of resources through the 

implementation of policy, transparency, and accountability 

to gain the trust of the people. But, the absence of 
government effectiveness may lead to autocracy, resulting 

in inflation (Adam & Alhassan, 2021; Raihan et al., 2022). 

As per Bueno (2005), autocracies by nature depend on a 

small number of elites in whom political and economic 

resources are disproportionately concentrated. Apart from 

this, Khalid (2015) has used an econometric model to 

examine the short-run and long-run relationships between 

inflation and each of the important dimensions like 

government effectiveness, rule of law, and corruption 

control in Pakistan. It was found that there existed short-

run as well as long-run relationships among the dependent 

and independent variables according to the Engle-Granger 
methodology. But, research on government effectiveness is 

still rare from Bangladesh's perspective, which can prove 

beneficial to altering the high rate of inflation to a stable 

one. 

Lastly, in the case of Bangladesh, only a few studies have 

examined the role of determinants on inflation. For 

example, Chowdhury (1995) notes that the inflationary 

process in Bangladesh cannot be explained exclusively by 

the monetarist or the structuralism explanation of inflation, 

but it does have a strong but relatively short-run impact on 

inflation. Hossain (2013) found that there is a positive 
relationship between money supply and inflation in 

Bangladesh. Uddin (2014) indicated that the GDP, money 

supply, and interest rates have contributed to increasing 

inflation in Bangladesh. Also, a few other studies have 

tried to examine the process of inflation in Bangladesh on 



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the economic determinants that affect the inflation rate, 

such as Uddin et al. (2014), Islam et al. (2022). 

However, the above studies are mostly focused on 

economic determinants and lack knowledge of the 

influence the non-economic determinants have specifically 
on Bangladesh, without which it is difficult to explain how 

political instability, rule of law, control of corruption, 

government effectiveness, and other crucial determinants 

impact inflation. This particular study fills the gap in the 

literature by developing an empirical case of Bangladesh 

that captures some of the necessary features that can lead 

to a robust change in how economists perceive inflation in 

an aspect of Bangladesh’s economy. 

 

Methodology 

 

Model Specification: Generalized Linear Model 

The GLM model permits us to fabricate a direct connection 

between the response and indicators, in spite of the fact 

that their veiled relationship isn't straight. This is made 
conceivable by utilizing a connection capability, which 

interfaces the reaction variable to a straight model. In 

contrast to linear regression models, the error dispersion of 

the reaction variable need not be regularly conveyed. The 

mistakes in the reaction variable are accepted to follow a 

thespian group of circulation (for example, normal, 

binomial, and other distributions). Since we are attempting 

to sum up a straight relapse model that can likewise be 

applied in these cases, the name “Generalized Linear 

Model” which was developed by Nelder and Wedderburn 

(1972) However, the functional form of this model is 

represented in equation 1. 

Inflation =
f(Rule of Law, Control of Corruption, Govt. Effectiveness)                   (1)    
 

INFt =∝0+∝1 ROLt +∝2 CCt +∝3 GEt + ωt                                                                  
(2) 

 

For the simplicity of estimated model, log transformation 

is a necessary step. The log form of this model is presented 

in equation 3.  

Ln(INF)t =∝0+∝1 Ln (ROL)t +∝2 Ln (CC)t

+∝3 Ln (GE)t + ωt                             (3) 

 

Where, ∝0  represent the intercept, ∝1  to ∝3  represent the 

coefficient of the estimation,  ωt  represent the error 

estimation tenure and t indicates time.  

 

The GLM permits us to sum up a wide assortment of 

assessment results (Le et al., 2020; Liu & Lu, 2018). The 

serious issue for the analyst who utilizes the GLM is model 

detail. The specialist is liable for determining the specific 

condition that best sums up the information for a review. 

On the off chance that the model is miss-specified as well 

as small sample, the assessments of the coefficients such as 

∝  values are probably going to be biased and the 

subsequent condition won't depict the information 
precisely. In complex circumstances, this model 

determination issue can be a serious and troublesome one. 

The GLM is quite possibly of the main device in the 

measurable examination of information. It addresses a 

significant accomplishment in the headway of social 

exploration in the last couple of decades. 

 

 ADF Unit Root Test 

 

Since the purposes of time series analysis, recognizable 

Augmented Dickey Fuller (ADF) test is one of the most 

outstanding techniques for testing the unit root of a 
variable. In this cycle, the unit root has been analyzed by 

thinking about the slacked request of chosen factors and 

mistake or residuals assessments. Stationarity tests permit 

checking regardless of whether a series has unit root 

problems or not. There are two unique methodologies: 

stationarity tests, for example, the ADF test that considers 

as H0 that the series is nonstatiorany with the presence of 

unit root.  

∆Wt =  β1 + β2t +  τ(Wt−1) +  γt ∑ ∆Wt−1

f

i=1

+ εt                            (4) 

Where; εt are an error component and ADF term Wt−1  is 

the lagged order criteria, ∆  indicates the change and t 

presents the time. 

 

Result Analysis 

 

In Table 1, the study of descriptive statistics shows that all 

the variables associated with this model are measured in 

terms of mean, median, maximum, minimum, standard 

deviation, skewness, kurtosis, Jarque-Bera, and probability. 

In the case of the measure of central tendency, it is 
estimated that the average of government effectiveness, 

inflation, control of corruption, and rule of law are-0.70, 

5.58, -0.97, and -0.84 respectively. The average inflation 

rate, which is a dependent variable in this model, is the 

highest among the other variables. Also, after sorting the 

observations, the median value of variables including GE, 

INF, CC, and ROL is presented. The range, which is the 

dispersion, is presented by the minimum and maximum of 

the variables. Moreover, st.dev, which shows how far each 

data value is from the mean, of GE and ROL, is 0.11, 

which is the lowest compared to the other two values. It 
means that these values are more consistent and less spread 

out from the sample average. In addition, in the case of 

skewness, which measures the degree of asymmetry, it is 

seen that the values are positive except for control of 

corruption. In this table, GE shows normal skewness but 

not a symmetric or bell-shaped curve as it shows higher 



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values towards the right side of the curve. Also, INF, along 

with ROL, shows normal skewness. Moreover, CC shows 

a left-tail test in terms of skewness. With regards to 

kurtosis, which measures the flatness and peakness of the 

distribution, all variables, including INF and ROL, 
represent lower kurtosis values, which are less than 3, 

except GE and CC, whose values are higher than 3. In this 

perspective, both variables like INF and ROL have a 

platykurtic, which means more flat than the normal curve, 

whereas GE and CC have a leptokurtic, which means more 

peak than the normal curve. 
 

 

Table 1: Descriptive Statistics 

 

Criteria GE INF CC ROL 

 Mean -0.70 5.58 -0.97 -0.84 

 Median -0.73 5.69 -0.94 -0.83 

 Maximum -0.43 8.16 -0.44 -0.64 

 Minimum -0.86 3.26 -1.49 -1.02 

 Std. Dev. 0.11 1.47 0.26 0.11 

 Skewness 1.16 0.09 -0.10 0.25 

 Kurtosis 3.64 1.90 3.20 1.92 

 Jarque-Bera (JB) 6.07 1.30 0.08 1.49 

 Probability (JB) 0.15 0.52 0.96 0.47 

Source: Author’s inference  

 

Table 2: ADF Unit Root Test Results 

Variables At Level At 1st  Difference 

Ln(INF) -1.85 -4.53*** 

Ln(ROL) -3.26 -5.90*** 

Ln(CC) -2.92 -4.24*** 

Ln(GE) -1.90 -5.19*** 

Assumption: Trend and Intercept; *** tends to 1% level of significance 

Source: Author’s inference  

 

Table 3: Result of Generalized Linear Model (GLM) 

Variable Coefficient Std. Error z-Statistic Prob.   

Dependent Variable: Inflation (Ln(INF) 

LnGE -4.48* 2.87 -1.56 0.10 

LnCC -0.88 1.25 -0.70 0.48 

LnROL -4.63** 2.38 1.95 0.05 

C 5.50** 2.79 1.97 0.05 

Model Strength 

LR statistic 12.36     Prob(LR statistic) 0.01 

Pearson Chi-Square 32.55      0.05 

** tends to 5%  and * tends to 10% level of significance 

Source: Author’s inference  

 

 

Table 4: Cointegration Analysis by Wald Test 

Test Statistic Value df Probability 

F-statistic 128.79 (4, 21) 0.00 

Chi-square 515.16 4.00 0.00 

Null Hypothesis: C(1)=C(2)=C(3)=C(4)=0 

Source: Author’s inference  



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Figure 1: Stability Diagnostics: CSUSM Test 

 

 

 

 
 

 

 

 

 

 

 

 

 

 

 

 
 

Source: Author’s inference  

 

In Table 2, it is observed that variables are non-stationary 

at their level after converting into 1st  difference, they turn 

into stationary. The hypothesis has been rejected at the first 

difference operation where the null hypothesis is rejected. 

The result from Table 3 is that inflation is a dependent 

variable where government effectiveness, control of 

corruption, and the rule of law are independent variables. If 

GE increases by 1 percent, INF decreases by 4.48 percent, 
keeping other factors constant. Similarly, if ROL and CC 

rise by 1%, INF falls by 4.63 % and 0.88 %, respectively, 

assuming all other variables remain constant. The results of 

the cointegration test are shown in Table 4, where the null 

hypothesis states that coefficients 1, 2, 3, and 4 are equal to 

zero and the alternative hypothesis states that these 

coefficients are not equal to zero. The estimated 

probability value is less than 5%, indicating that we are 

rejecting the null hypothesis and that these four 

coefficients are not equal to zero. They are significant 

variables in the model, and they add value to the model by 

incorporating the long run association among the selected 
factors. The stability diagnostic shows the CUSUM test in 

Figure 1, where the result estimation implies the stability 

rules in the GLM analysis. However, this study found the 

importance of the rule of law, corruption control, and 

government effectiveness. The results support the 

following statements, such as the rule of law helps to 

reduce inflation these findings are similar to those of 

Grindle (2012) and Shevchuk et al. (2021). On the other 

hand, this study also found the fact that government 

effectiveness has a large impact on the control of inflation. 

This finding is similar to that of Soh et al. (2021) and 
Yousefinejad et al. (2022). In addition, this study also finds 

out the actuality where control of corruption has a hefty 

impact on control of inflation in Bangladesh, which is 

supported by Haider et al. (2011) for Pakistan and Ali and 

Sassi (2016) for both developed and developing countries. 

 

Conclusion and Recommendations 

 

Nowadays, inflation is one of the major concerns and 

challenges for Bangladesh's economy. If the high inflation 

rate continues, it could pose an alarming situation for the 

economic development of a country. Therefore, a stable 

inflation rate must be maintained by identifying and 

controlling the significant determinants of inflation. The 
preceding discussion demonstrates that, despite being 

overlooked, the rule of law, corruption control, and 

government effectiveness have a huge potential to 

influence the rate of inflation as non-economic 

determinants. Thus, the impact of such crucial components 

must be studied in the case of Bangladesh. This is an 

effective initiative for determining the impact and 

significance of noneconomic determinants on inflation in 

Bangladesh. However, the unit root test indicates that I am 

stationary at the first difference of all variables (1). 

Cointegration results ensure long-run association of 

variables. The GLM technique is used in econometric 
methods to assess the importance of noneconomic 

determinants in controlling inflation. Controlling inflation 

should be one of the government's priorities. The empirical 

studies mentioned above show that there is a significant 

long-run positive relationship between inflation and the 

rule of law, corruption control, and government 

effectiveness in Bangladesh. Since the study shows the rule 

of law has an anti-inflationary impact, more emphasis 

should be given to ensuring fundamental rights of people 

and civil and criminal justice through proper enforcement 

of law and regulations. The rate of inflation must be easier 
to keep under control in a country when the government 

executes the rule of law. Moreover, corruption is the 

greatest threat to the government, and institutional reform 

is required to eliminate the breeding ground for corruption. 

Political and economic restructuring should be carried out 

-15

-10

-5

0

5

10

15

2004 2006 2008 2010 2012 2014 2016 2018 2020

CUSUM 5% Significance



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in tandem. And under a democracy, the government must 

be more careful to increase its effectiveness. Because it is 

the right of people in a democratic country to criticize and 

question government actions, and it is the duty of the 

government to ensure accountability to the people. This 
paper highlights a new perception of how the inflation rate 

can be more effectively balanced by controlling regulatory 

and legal mechanisms, bridging the legal perspective gap 

between economists and legal and regulatory authorities. 

The analysis was limited by the small sample size, and 

further research may consider other macroeconomic 

determinants such as regulatory quality, political stability, 

and accountability voice, where those factors have 

contributed to lowering inflation in a country.  

 

Acknowledgement: None 

 
Funding: None 

 

Author’s Contributions: GMIK, SM, MF and MMU and 

deals with substantial writing, theoretical analysis and 

revision.   

 

Declaration of interests: The authors declare that they 

have no known competing financial interests or personal 

relationships that could have appeared to influence the 

work reported in this paper. 

 

 

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