The effect of economic activities combination on corruption A Case Study of Iran and OPEC countries

Document Type : Research Article

Authors

Abstract

Corruption is defined as abuse of power by governmental and private officials for personal goals. Corruption is affecting by many variables, such as political, economic, cultural, geographical factor and will be influenced on many variables. The main goal of this article, is analyzing of effect of economic activity combination on corruption. In this article, 6 variables corruption, GDP per capita, oil rent, share of industrial value added in GDP and share of services value added in GDP are used. In this article, two models are estimated. First model is Bayesian model that is used for Iran. Second model is panel data model that is used for OPEC countries over the years 1995 to 2010. The conclusion have been obtained shows that oil rent and share of services value added in GDP variables have an positive effect on corruption and as they increase, corruption have been increased. The share of industrial value added in GDP and GDP per capita variables have an adverse effect on corruption and as they increase, corruption have been decreased. Also democracy has no significant effect on corruption.

Keywords

References

هرآرا، محسن و میری، اعظم­السادات (1389)، "رابطه میان درآمدهای نفتی و ارزش‌افزوده بخش­های مختلف اقتصادی در کشورهای صادرکننده نفت: ایران، مکزیک و ونزوئلا"، مجله تحقیقات اقتصادی، شماره 90: 206-183.
مهرگان، نادر و محسنی، الهه (1391)، "بررسی رابطه علی بین فقر و فساد در کشورهای درحال‌توسعه"، فصلنامه علمی-پژوهشی رفاه اجتماعی، سال دوازدهم، شماره 46: 64-33.
Ades, A. and Di Tella, R. (1997b); “ National Champions and Corruption: A Survey and Some Unpleasant interventionist arithmetic”, The Economic Journal 107: 1023-1042
Akça, H.; Ata, A.Y. and Karaca, C. (2012); “Inflation and Corruption Relationship: Evidence from Panel Data in Developed and Developing Countries”, International Journal of Economics and Financial Issues, Vol. 2, No. 3: 281-295.
ATA, A.A. and Arvas, M.A. (2011); “Determinants of Economic Corruption: A Cross-Country Data Analysis”, International Journal of Business and Social Science, Vol 2, No 13 [Special Issue - July 2011].
Ays¸e Y. Evrensel (2010); “Institutional and economic determinants of corruption: a cross-section analysis”, Applied Economics Letters,17: 551-554.
Bai, J.; Jayachandran, S.; Malesky, E.J. and Olken, B.A. (2014); “Does Economic Growth Reduce Corruption?Theory and Evidence from Vietnam”, NBER WORKING PAPER SERIES,No. 19483.
Billger, Sh.M. and Goel, R.K. (2009); “Do existing corruption levels matter in controlling corruption? Cross-country quantile regression estimates” , Journal of Development Economics 90: 299-305.
Damania, R.; Fredriksson, P.G. and Mani, M. (2004); “The Persistence of Corruption and Regulatory Compliance Failures: Theory and Evidence”, Public Choice 121: 363-390.
Serra, D. (2006); “Empirical determinants of corruption: A sensitivity analysis”, Public Choice 126: 225-256.
Dong, B. and Torgler, B. (2013); “Causes of corruption: Evidence from China”, China Economic Review 26: 152-169.
Draper, D. (1995); Assessment and propagation of model uncertainty. Journal of the Royal Statistical Society. Series B (Methodological), 45-97.
Dreher, A.; Kotsogiannis, Ch. and McCorriston, S. (2009); “How do institutions affect corruption and the shadow economy?”, Int Tax Public Finance 16, 773–796.
Elbahnasawy, N. G. and Revier, Ch. F. (2012); “The determinants of Corruption: Cross-Country-Panel Analysis”, The Developing Economies, 50, No. 4: 311-33.
Glyfason, T. (2001), “ Natural resource and economic growth: what is the connection?”, CESifo working paper, No. 530.
Goel, R.K. and Nelson, M.A. (2005); “Economic Freedom Versus Political Freedom: Cross-Country Influences on Corruption”, Australian Economic Papers, June, 121-133.
Husted, B. W. (1999); “Wealth, Culture and Corruption”, Journal of International  Business Studies, Vol. 30, No. 2: 339-360.
Karl, T. (2004); “The Social and Political Consequences of Oil”, Cutler Cleveland, ed. Encyclopedia of Energy. San Diego: Elsevier.
Kalenborn, Ch. and Lessmann, Ch. (2013); “The impact of democracy and press freedom on corruption: Conditionality matters”, Journal of Policy Modeling 35: 857-886.
Kotera, G.; Okada, K. and Samreth, S. (2012); “Government size,democracy, and corruption:An Empirical investigation” , Economic Modelling, 29: 2340-2348.
Mohtadi, H. and Roe, T. L. (2003); “Democracy, Rent Seeking, Public Spending and Growth”, Journal of Public Economics.87 (3-4), 445-466.
Persson, T.; Tabellini, G. and Trebbi, F. (2003); “Electoral Rules and Corruption”, Journal of the European Economic Association, Vol. 1(4): 958-989.
Pungpapong, V.; Zhang, M. and Zhang, D. (2012); “Empirical Bayes variable selection using iterated conditional modes/medians”. Manuscript submitted for publication
Rock, M. T. (2007); “Corruption and Democracy”, DESA Working Paper No. 55.
Sachs, J. and Warner, A. (1995); “Natural recourse abundance and economic growth”, NBER working paper, 5938, Cambridge, MA.
Ross, M. (1999b); “The Political Economy of the Resource Curse”, World Politics 51: 297-322.
Samadi, A. H. and Farahmandpour, B. (2013); “The Effect of Income Inequality on Corruption in Selected Countries (1995-2007)”, Journal of Emerging Issues in Economics, Finance and Banking (JEIEFB), Volume:1 No. 3.
Shadabi, L. (2013); “The impact of religion on corruption”, The Journal of Business Inquiry, Vol. 12: 102-117
Shao, J.; Ivanov, P.Ch.; Podobnik, B. and Stanley, H. E. (2007); “Quantitative relations between corruption and economic factors”, Eur. Phys. J. B56, 157-166.
Sims. Z. H, 1990, “Nine Variable Probabillistic Macroeconomic Forecasting Model”, Econometrica, 58: 113-144.
Torvik, R. (2002); “Natural resource, Rent seeking and Welfare”, J. DEV. Econ., 67, 2: 455-470.
Treisman, D. (2000); “The causes of corruption: a cross national study”, Journal of Public Economics: 399- 457.
Toke, S. Aidt. (2010); “Corruption and Sustainable Development”, Cambridge Working Papers in Economics 1061, Faculty of Economics, University of Cambridge. 
Journal of Applied Economics Studies in Iran
Volume 5, Issue 19
November 2016
Pages 187-210

Files

Share

How to cite

Statistics