A Comparative Study of the Relationship between Corruption and Human Capital in Selected Islamic Countries

Document Type : Scientific paper

Authors

1 Ph.D. student Economics, Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran

2 Associate professor, Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran

3 Professor of Economics, Department of Economics, Tabriz University, Tabriz, Iran

4 Associate Professor ,Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran.

Abstract

The purpose of this research is to compare the relationship between corruption and human capital in 19 countries with very high and high human development (first group) and 35 countries with average and low human development (second group). To conduct this study and investigate the long-term and short-term relationships between the variables of the model from 2012 to 2018, a descriptive-analytical method and the panel econometric method were used. Results show that in the first group of countries (high human development), about 71.48% of corruption changes were caused by corruption-related shocks, 5.30% by inflation-related shocks, and 9.75% by education-related shocks at the end of the period. The findings also revealed that 3.17% of corruption changes were explained by shocks caused by GDP per capita, 7.65% by shocks caused by health, and 2.62% by shocks caused by good governance. However, in the second group (low human development), the results showed that at the end of the period, about 62.26% of corruption changes were caused by corruption-related shocks, 21.54% fluctuations by inflation-induced shocks, 0.2% by education shocks, 1.34% by shocks due to GDP per capita, 9.33% by shocks due to health, and 5.30% by shocks due to good governance. In conclusion, it can be said that the indicators of human capital in countries with high human development (the first group) explained 17.4% of corruption changes, while this factor is 9.53% in countries with low human development (the second group). In other words, in the first group of countries, the changes and structure of corruption are better explained by human capital indicators.

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Main Subjects

References

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Macroeconomics Research Letter
Volume 16, Issue 32
December 2021
Pages 219-248

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History

  • Receive Date: 21 December 2021
  • Revise Date: 24 February 2023
  • Accept Date: 04 March 2023

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