The Short- and Long-Run Effects of Oil Revenues on Economic Corruption in Iran

This paper investigates the short-term and long-term effects of oil revenues on economic corruption in Iran using Autoregressive Distributed Lags (ARDL) model during 1979-2011. Findings indicate that increase (decrease) in oil revenues by one percent increases (decreases) per capita economic corruption by 0.29 percent in the long run. In addition, increases in government regulations indicator and government size by one percent reduce the per capita economic corruption by 1.95 and 1.63 percent, respectively. Moreover, one percent increase in trade openness results in increase in economic corruption per capita by 1.26 percent.