The Impact of the Internet on Corruption in OIC Countries: An Inter-Country Panel Study

Corruption is a well-known and prevalent phenomenon in developing countries such as Iran. One of the effective factors in reducing corruption and increasing the level of transparency is the use of information and communication technology (ICT) tools. This study investigates the impacts of ICT on corruption in the selected OIC countries for the period 2002-2020. Before estimating the model by panel data approach, the existence of cross-sectional dependence has been tested and ratified in the studied countries. Therefore, to obtain reliable results, the Cup-FM Method was used to estimate the model. Based on the results of model estimation, the impact of ICT components on corruption has been negative and significant. Correspondingly, the impact of inflation, per capita income, and the rule of law on corruption are significantly positive, negative, and negative, respectively.  Furthermore, trade openness has a positive, but not statistically significant, impact on the corruption index.