Effects of institutional factors on economic growth in Islamic countries

Effects of institutional factors on economic growth in Islamic countries (with emphasis on economic corruption in Iran) " Asghar mobarak (expert of international Trade)The different models of economic growth especially the neoclassic ones viewed thedisparate economic growths as the resulting from differences in economic factors such ascapital (physical and human) and productivity. However, the difference in accumulationof capital and productivity are themselves rooted in factors that institutional economistsintroduce as the instructional structure of any country.They don’t deem lack of capital or labor force as the main reason for low income percapita in the undeveloped countries. As a matter of fact, in their opinion, it is the lack ofappropriate institutional grounds for productive economic activities and accumulation ofcapital that they refer as the main reason for that. Most of the empirical studies conducted assess the impact of Institutions on economic growth as positive. In the present study, we have delved into the institutional factor as an economic factor on economic growth. The institutional factor is includes the ruling institutions (the right to express views and respond, political stability, controlling corruption, rule of law, the quality of bureaucracy and the effectiveness of the government) and is separately examined in the present article for the designated Islamic countries of Egypt, Iran, Turkey, Saudi Arabia, Malaysia, Indonesia, and Kuwait with different levels of development in the 19802005- period, using the combined Data method. The results show that the degree of effectiveness of Institutional and governance factors in countries like Iran, Egypt, Turkey and Indonesia is less compared to other countries.