To Examine Social-Economical Factors Effective on Corruption in Oil Producer Selected Countries: Panel VAR Model Application

Document Type : Scientific paper

Authors

1 Ph.D. Student in International Economics, Islamic Azad University, Aligudarz Branch, Aligudarz, Iran

2 Assistant professor, Corresponding Author, Islamic Azad University, Yazd Branch, Yazd, Iran.

Abstract

This study aims at examining factors effective on corruption in oil producer countries using the Panel VAR method in the 1996 - 2019 period. For this, these countries have been divided into two groups of countries with high annual income and ones with low annual income. Based on the research background and reviewing theoretical bases, three factors were considered effective on the corruption index, including economical factors ( economical growth and government costs to GDP ratio ), social factors ( Gini coefficient ), and factors ( democracy and bureaucracy ). Results indicated that in countries with low annual income, the government costs to GDP ratio, bureaucracy, and Gini coefficient lead to increase corruption index. In contrast, in oil producer countries, with high annual income, the economic growth rate, Government costs to GDP ratio ، improving democracy and bureaucracy lead to corruption index and increasing Gini coefficient leads to increase corruption index in these countries.

Keywords

References

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Macroeconomics Research Letter
Volume 15, Issue 30
January 2021
Pages 107-129

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History

  • Receive Date: 18 July 2020
  • Revise Date: 31 January 2021
  • Accept Date: 06 March 2021

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