Investigating the Effects of Social Capital on Financial Corruption in Iran

Financial corruption is one of the most important causes of weakening economic growth and development. The World Bank has raised the issue of good governance as the main topic of economic policies of governments, especially in underdeveloped and developing countries. One of the most important indicators of good governance is the fight and eradication of corruption. The importance of fighting corruption has led to extensive studies on the factors affecting the control of financial corruption in recent years.The aim of this article is to examine the effects of social capital on financial corruption in Iran. For this purpose, after estimating the fuzzy social capital and financial corruption in Iran, the autoregressive model with distributional lags (ARDL) was used to estimate the long-term relationship of the financial corruption model. The results show that the elasticity of financial corruption to social capital during the period 1360-1399 is negative and equal to -0.52 percent. This finding confirms the fact that in the long run, by strengthening social capital in the country, the volume of financial corruption would decrease.