An Examination of the Determinants of Corruption with Emphasis on Economic Activities combination: A cross-country study

Corruption defined as abuse of power by governmental officials for personal goals.in recent years, many articles about determinants of corruption have been written that introduced so many variables as determinants of corruption. These factors can be divided into two categories: economic and non-economic factors.in these article we examine the effect of economic activities combination on corruption.In order to define composition of the economic activities, we use two variables, the value added of the industrial sector in GDP and the value added of the services sector to GDP.in this paper we use 7 variables, including Corruption, Government Size, Democracy, GDP per capita, Inflation, The share of industrial sector value added in GDP and The share of Service sector value added in GDP.Panel data method is estimation method that used for 60 developing countries during 1995 to 2010. Our hypothesis in this research is that the economic activities combination is effective on corruption. The conclusion have been obtained shows that democracy and GDP per capita variables have an adverse effect on corruption and as they increase, corruption have been decreased. Increasing in the size government and inflation will also increase corruption. Finally increasing in the share of industrial in GDP will reduce corruption and also increasing in the service sector share in GDP will increase corruption.