Document Type : Research Paper

Authors

1 MA in Economics,Faculty ofEconomics, Islamic Azad University, Isfahan (Khorasgan)branch,

2 Assistant professor, Faculty ofEconomics, Islamic Azad University, Isfahan (Khorasgan) branch

Abstract

One of pleasant subjects for economists, in the field of Macro-political economy, is investigating the impact of relevant factors on financial corruption. This study aims to investigate the effect of economic and political factors on financial corruption, economic growth, and the size of government as well as their interaction effects in the selected oil producing countries over the 2003-2014 period. To estimate the model, system panel data approach is applied based on Generalized Method of Moments (GMM) estimator. The results showed that an improvement in the economic growth, size of government, democracy, rule of law and access to sound money variables decrease financialcorruption of selected oil producing countries. Also, improving the size of government, political stability, democracy, business regulations variables and decreasing financial corruption has led to economic growth of the selected countries. Finally, improving economic growth, increasing oil revenues and urbanization has increased the size of government in these countries.

Keywords

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