Economic Growth and Development Research

In collaboration with Payame Noor University and Iranian Association for Energy Economics (IRAEE)

About Journal

Aims and Scope

Editorial Board

Publication Ethics

Indexing and Abstracting

Related Links

FAQ

Peer Review Process

Journal Metrics

News

Current Issue

By Issue

By Author

By Subject

Keyword Index

LIST 1400

LIST 1399

The Effect of Combining Economic Activities on Corruption; A Case Study of Developing Countries

Document Type : Quarterly Journal

Author

M.A. in Economics, Tehran University, Tehran, Iran

Abstract

Corruption is defined as the manipulation of power by private and public authorities to achieve personal and individual goals. Many articles have been written about the factors formed corruption that a wide range of variables to be included. In this article we will examine the role of a factor in the corruption forming that had not been studied yet. This factor is combining economic activities. The combining economic activities is defined by using of the ratio of the industrial value added in GDP and the ratio of the services sector value added in GDP. Also, the main purpose of this paper is to study the effect of combining economic activities on corruption, using the data for 60 developing countries from 1995 to 2014. In this regard, we use six variables including corruption, government size, democracy, GDP per capita, the ratio of the value added in the industrial sector to the GDP and the ratio of the value added in the service sector to the GDP. Our hypothesis is that combining economic activities is effective on corruption. In this paper, 2 GMM models are estimated. The results indicate that variables of democracy, GDP per capita and the ratio of the industrial sector to GDP has a positive relationship with corruption index. That is, an increase in these variables reduces the level of corruption. Also, the variables of government size and the ratio of service sector to GDP have a negative relationship with corruption index which means an increase in these two variables raises the level of corruption.

Keywords

References
انواری، ابراهیم؛ صلاح منش، احمد؛ شیخ انصاری، مجید و مرادی، مهوش (1395). "آیا تعامل میان فساد و آزادسازی مالی بر رشد اقتصادی تأثیرگذار است؟ شواهدی از کشورهای صادر کننده نفت (OPEC)". فصلنامه علمی پژوهشی پژوهش‌های رشد و توسعه اقتصادی، دوره 6، شماره 24، 128-115.
تقی‌نژاد عمران، وحید؛ بهرامی، جابر و نصیری، هادی (1394). "بررسی تأثیر جهانی شدن بر کاهش فساد اداری کشورهای منا". فصلنامه مطالعات راهبردی جهانی شدن، سال 6، شماره 16، 261-237.
حکمتی‌فرید، صمد؛ عزتی‌شورگلی، احمد؛ عزتی، رضا و دهقانی، علی (1394). "تأثیر جهانی شدن و کنترل فساد بر رشد اقتصادی کشورهای با درآمد سرانه پایین، درآمد سرانه متوسط و درآمد سرانه بالا". فصلنامه علمی پژوهشی پژوهش‌های رشد و توسعه اقتصادی، دوره 5، شماره 18، 112-95.
دهمرده، نظر؛ علیزاده، محمد و زیدی‌زاده، سمیرا (1391). "بررسی اثر اندازه دولت بر فساد با تأکید بر نقش دموکراسی در منطقه منا". مجله اقتصاد و توسعه منطقه‌ای، سال 19، شماره 4، 74-48.
مهرگان، نادر و محسنی، الهه (1391). "بررسی رابطه علّی بین فقر و فساد در کشورهای در حال توسعه". فصلنامه علمی‌پژوهشی رفاه اجتماعی، سال 12، شماره 46، 64-33.   
 
 
 
 
Ackerman, R.S. (1978). “Corruption: A Study in Political Economy”. Academic Press, New York.
Alfano, M. R., Baraldi, A. L. & Cantabene, C. C. (2014). “The Effect of the Decentralization Degree on Corruption: A New Interpretation”. Siep Working Paper, 670.
Bai, J., Jayachandran, S., Malesky, E. J. & Olken, B. A. (2014). “Does Economic Growth Reduce Corruption? Theory and Evidence from Vietnam”. NBER Working Paper Series, 19483.
Bhattacharyya, S. & Holder, R. (2012). “Media Freedom and Democracy: Complements or Substitutes in the Fight Against Corruption?”. CSAE Working Paper, WPS/2012-02, 1-31.
Bhattacharyya, S. & Holder, R. (2015). “Media Freedom and Democracy in the Fight Against Corruption”. European Journal of Political Economy, 39, 13-24.
Braun, M. & Di Tella, R. (2004). “Inflation, Inflation Variability, and Corruption”. Economics & Politics, 16(1), 77-100.
Cavoli, T. & Wilson, J. K. (2015). “Corruption, Centeral Bank (in) Dependence and Optimal Monetary Policy in a Simple Model”. Journal of Policy Modeling, 37(3), 501-09.
Damania, R., Fredriksson, P. G. & Mani, M. (2004). “The Persistence of Corruption and Regulatory Compliance Failures: Theory and Evidence”. Public Choice, 121, 363-390.
Dreher, A., Kotsogiannis, Ch. & McCorriston, S. (2009). “How do Institutions Affect Corruption and the Shadow Economy?”. International Tax and Public Finance, 16, 773–796.
Goel, R. K. & Nelson, M. A. (1998). “Corruption and Government Size: A Disaggregated Analysis”. Public Choice, 97, 107–120.
Graeff, P. & Mehlkop, G. (2003). “The Impact of Economic Freedom on Corruption: Different Pattern for Rich and Poor Countries”. European Journal of Political Economy, 19, 605–620.
Lalountas, D. A., Manols, G. A. & Vavouras, I. S. (2011). “Corruption, Globalization and Development: How are These Three Phenomena Related?”. Journal of Policy Modeling, 33, 636–648.
Persson, T., Tabellini, G. & Trebbi, F. (2003). “Electoral Rules and Corruption”. Journal of the European Economic Association, 1(4), 958-989.
Pieroni, L. & d’Agostino, G. (2013). “Corruption and the Effects of Economic Freedom”. European Journal of Political Economy, 29, 54-72.
Samadi, A. H. & 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), 1(3), 214-231.
Selim, A. & Bontis, N. (2009). “The Relationship between Culture and Corruption: A Cross National Study”. Journal of Intellectual Capital, 10(1), 165-184.
Economic Growth and Development Research
Volume 7, Issue 27 - Serial Number 27
July 2017
Pages 157-170
Files
History
  • Receive Date: 12 January 2016
  • Revise Date: 17 April 2016
  • Accept Date: 12 April 2016
Share
How to cite
Statistics