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Factors influencing the formation of corruption in oil-rich countries

Author

Listed:
  • Masoome Fouladi
  • Hedieh Setayesh
  • Yazdan Goudarzi-Farahani

Abstract

Corruption undermines economic development and therefore it is one of the major factors hindering economic growth and political stability, especially in the developing countries. Studies in recent years show that countries with rich natural resources have the potential to shape corruption. Several studies have been done about this subject and different factors have been considered that most important are mechanisms for transparency, good management, good governance, human development and the degree of state dependence on oil revenues. This paper examines the factors affecting the level of corruption in 31 oil countries. This study uses GMM method and the period of time is 2000 to 2010 The results indicate that the size of the oil sector, government size, inflation, private sector debt, liquidity and democracy have a direct relationship with the level of corruption in these countries. However, the added value of the agricultural and industrial sectors and human development, relationships are reversed. So that with an increase in these indicators, the level of corruption in these countries has declined.

Suggested Citation

  • Masoome Fouladi & Hedieh Setayesh & Yazdan Goudarzi-Farahani, 2014. "Factors influencing the formation of corruption in oil-rich countries," 2nd International Conference on Energy, Regional Integration and Socio-Economic Development 7689, EcoMod.
    • Handle: RePEc:ekd:006666:7689
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    References listed on IDEAS

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    Keywords

    Algeria; Angola; Argentina; Australia; Azerbaijan; Brazil; Canada; China; Ecuador; Egypt; India; Andvnzhy; Iran; Iraq; Kazakhstan; Kuwait; Libya; Malaysia; Mexico; Norway; Oman; Qatar; Russia; Saudi Arabia; Sudan; United Arabic Emirates; United Kingdom; America; Venezuela and Vietnam.; Other issues; Socio-economic development;
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