The Relationship between Moral Corruption and Economic Development

One of the most important objectives of the countries is to create the necessary conditions for promoting economic development. The fundamental elimination of corruption, the promotion of economic freedom and property rights, along with the practical incentives for economic development, will not be possible except with the increasing connection of economic ethics. The purpose of this study was to investigate the relationship between ethics, property rights and economic freedom on economic development.

This is an applied-correlation research. Macroeconomic indicators for economic freedom, property rights, ethics index and the index of economic development of the country Iran has selected as population that Years 2008-2017 were selected as sample. Measuring was the World Bank, Fraser and Heritage institute and the International Institute of Transparency. The ARDL statistical method was used for testing.

The fit of the research model, which included a main hypothesis, was confirmed. Ethics, economic freedom, and property rights are significantly related to development, and the effects of shocks are adjusted over time.

It was estimated that all variables are stable and development has a positive and significant relationship with property rights and economic freedom and a negative and significant relationship with moral corruption, while the long-term relationship was also confirmed.