فساد، سرمايه گذاري بخش خصوصي و رشد اقتصادي (مطالعه ي موردي: ايران)

Corruption, Private Investment and Economic Growth: A Case Study in Iran

This paper is to analyze the effect of corruption on economic growth through its effects on the level and composition of public expenditures and/or private sector investment. The main point here is that a different method was applied to reveal the corruption index. This method is based on the Principals Components Analysis. After the calculation of the corruption index through PCA, the relations between the variables are assessed through OLS and WLS methods. The findings show that the corruption has negative effect on economic growth; moreover, there is strong relation between the level of corruption and the level of private sector investment and/or the size of the public sector in Iran.