The Effect of Corruption on the Growth of the Iranian Economy: A Talent Allocation Approach

There are numerous and conflicting views on the impact of corruption on economic growth. A number of humanities scholars have described corruption as a good phenomenon and called it the grease wheel of the economy, and they believe that financial corruption improves the weak economic institutions, and by that means , The growth rate of the economy will increase. On the other hand, some scholars have emphasized the undesirable nature of corruption and considered financial corruption as the economy's sand and argued that corruption is costly and costly, and the ineffectiveness of the administrative process and the transfer of resources to non-productive activities is eroding economic growth.This paper studies the impact of corruption on the growth of the Iranian economy from 1983 to 2014 by using the talent allocation approach and by applying the econometric method of equation system. The divergence in talent allocation has slowed the growth of the Iranian economy in of these years.