Impact of Compound Democracy Variables on Corruption Control; with Special Reference to Property Rights

Corruption is an economic, political and cultural disorder phenomenon, that influence on developed and developing countries.In this study, first, we identify the phenomenon of corruption in a general equilibrium analysis. Then, we investigate the relationship between corruption, property right, and democracy, on the basis of the evidence from developing economies. For this purpose, a panel model is used to analyze relevant data of 53 selected developing countries for the period of 1996 and 2013. The results indicate significant negative effects of democracy, property rights, economic growth and investment on the level of corruption. Moreover, Gini coefficient of inequality and political instability have a significant and positive effect on corruption. Our findings also show by adding the interaction variable between democracy and property right protection as a new variable, the relationship between the corruption and democracy increase and that shows that the effect of democracy on corruption is empowered with the property right protection variable.