The effects of inflation on administrative and financial corruption and methods of control - Case study: group of Islamic Developing Countries (2003-2013)

The objective of this study is to evaluate the effect of inflation on the administrative and financial corruption in Islamic developing countries in the years of 2013 - 2003. To this end the corruption perception index for measuring corruption and financial is used and research model is estimated using panel data techniques. The results suggest that the negative impact of inflation on the Corruption Perception Index, and income per capita and the size of government have a positive impact, But the variable of government size - and to this group of countries in this study - had no significant impact on the corruption perception index and therefore not being capable of interpretation. Hence the policy approach of this study is that officials and policy makers who are concerned about the country’s healthy economic environment should seriously take steps to control inflation. Also being successful in economic policymaking and increasing per capita income, the control of financial and administrative corruption will be more successful.