The Effect of Money Laundering on the Health of Economic Growth in Iran

Since achieving stable economic growth is considered one of the important economic goals of every country and money laundering as a negative factor has a destructive role on economic instability, the current research was conducted with the aim of investigating the effect of money laundering on the health of economic growth in Iran.

In the present study, a self-explanatory model with ARDL distribution intervals was used to investigate the relationship between the money laundering variable and economic growth in Iran during the period of 1986-2019. The information and statistics required in this study are obtained from the Central Bank of the Islamic Republic of Iran, and Statistics Center websites. Additionallt, the amount of drug discovery was used as a money laundering structure and the percentage of changes in GDP was used as an indicator of economic growth.

The findings of the estimation show that there is a significant relationship between the independent variables of the model and the dependent variable of economic growth. This means that there is a negative and significant relationship between the independent variable of money laundering and the dependent variable of economic growth.

Conclusively, the result of this study indicated that the increase in money laundering has a negative effect on the macroeconomic performance, so that its expansion reduces the GDP. This means that the more dirty money is laundered through smuggling, the greater will be the negative impact on positive economic growth.