Document Type : Research Paper
Authors
1
Master of Economics, Shahid Chamran University of Ahvaz, Ahvaz, Iran
2
Assistant Professor of Economics, Shahid Chamran University of Ahvaz, Ahvaz, Iran
3
Associate Professor of Economics, Shahid Chamran University of Ahvaz, Ahvaz, Iran
Abstract
Corruption, from a theoretical point of view, can be both an oil (positive factor) in the gears of economic growth and pebbles (negative factor) in the gears of the economy. In this path, economic freedom, in addition to being an important platform and prerequisite for the development and improvement of non-economic factors (political stability, guaranteeing contracts, etc.) affecting economic growth, can moderate the destructive effects on economic growth. Therefore, the present study aimed to investigate the effect of economic freedom on the relationship between corruption and Iran's economic growth. In terms of purpose, the current research is in the category of applied research, and it is descriptive and analytical. In this regard, data related to economic growth, corruption, and economic freedom were collected from the World Bank website and used GLS, GMM & ARDL methods with time series data, as analyzed by EViews 13 software, covering the period from 1978 to 2020. The results showed that the variables of corruption and economic freedom had a negative and positive effect on Iran's economic growth, respectively, at a 5% probability level. Also, economic freedom has a positive moderating effect on the relationship between corruption and economic growth. From these findings, it can be concluded that economic freedom as a moderating factor can positively affect the negative relationship between corruption and economic growth and reduce the negative burden in this relationship.
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