Payame Noor University Economic Growth and Development Research 2228-5954 4 15 2014 08 23 The Effect of Knowledge-Based Economy Index on the Relationship between Fiscal Corruption Perception and Economic Growth (Dynamic Panel Data Approach) The Effect of Knowledge-Based Economy Index on the Relationship between Fiscal Corruption Perception and Economic Growth (Dynamic Panel Data Approach) 104 87 945 FA Sohrab Delangizan Mohammad Sharif Karimi Zeinab Khalvandi Journal Article 2013 11 17 Financial corruption affects on economy’s health via  different channels which the most important channel is distortions in the allocation of resources. On the other hand, the level of knowledge-based economy also can affect on behaviour of factors of production. An important question is whether the level of knowledge-based economy can affect the relationship between corruption and economic growth? This study investigates the effect of  financial corruption  on economic growth for 138 countries over the period 2000 - 2011 by using the consolidated corruption perception indicator, the level of knowledge based economy indicator and economic growth and a dynamic panel model which called Generalized method of moments (GMM). The results of classification of countries show that, in the groups with high knowledge-based economy indicator, control of financial corruption has positive impact on economic growth but in the groups with moderate knowledge-based economy indicator, control of corruption, has negative impact on economic growth. Also, the results show that in the first group of countries, stability of corruption control policies has a positive impact on economic growth but in the second group of countries, it has a negative effect. Financial corruption affects on economy’s health via  different channels which the most important channel is distortions in the allocation of resources. On the other hand, the level of knowledge-based economy also can affect on behaviour of factors of production. An important question is whether the level of knowledge-based economy can affect the relationship between corruption and economic growth? This study investigates the effect of  financial corruption  on economic growth for 138 countries over the period 2000 - 2011 by using the consolidated corruption perception indicator, the level of knowledge based economy indicator and economic growth and a dynamic panel model which called Generalized method of moments (GMM). The results of classification of countries show that, in the groups with high knowledge-based economy indicator, control of financial corruption has positive impact on economic growth but in the groups with moderate knowledge-based economy indicator, control of corruption, has negative impact on economic growth. Also, the results show that in the first group of countries, stability of corruption control policies has a positive impact on economic growth but in the second group of countries, it has a negative effect. https://egdr.journals.pnu.ac.ir/article_945_f29be73a8d588626389055a462e2bb7b.pdf