Resilient economy, Corruption and Endogenous economy (Case study: Iran)

Document Type : Review Article

Author

Professor, University of Economic Sciences

Abstract

This article studies the effects of corruption on the endogenous aspects of the Iranian economy as one of the resilient economy strategies. After reviewing the literature and major theoretical studies on resilient economy, it demonstrates two indexes to describe the endogenous aspects of the Iranian economy. The simple index relates to the non-oil growth in the Iranian economy. The article also proposes a composite index to show how corruption contributes to the resilience of the economy. the proposed index consists of the portion of the budget deficit, tax revenues and oil income in the whole government budget.
It concludes that in the non-oil economic growth model, the estimated elasticity of simple index of the endogenous economy to corruption index in the Period 1981-2013 is significant with a negative coefficient of 0.12 percentages. Additionally, by using the composite index as a dependent variable, the elasticity would be significant with a negative coefficient of 0.76 percentages

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References

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Quarterly Journal of The Macro and Strategic Policies
Volume 4, Resistive Economy
June 2016
Pages 63-90

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