The effects of corruption on economic inequality income distribution

One of main objectives of the governments and policy makers is to improve income distribution.
The aim of this paper is to study the effects of corruption on the gini coefficient as an indicator of income distribution. for this purpose two groups of contries were considered including five high income countries ( Germany, France, Italy, Canada, Japan ) and five middle income countries ( Iran, Turkey, India, Malaysia and china ).
By adopting a panel data model over the period of 2000- 2012, the results indicate that corruption significantly affect gini coefficient positively as income distribution index in both groups of countries and with increasing of corruption, income inequality will increase. In adition economic growth has negative effect on income distribution in high income countries and positive effect in middle income countries. Tax revenues have positive effects on income distribution and unemployment increases income inequality in both groups of countries.