The relationship between corruption and economic growth in Iran

This paper examines the important and effective role of corruption (trafficking and money laundering arising from it) as well as other factors such as the rising costs of order and security, privatization and the portion of the single currency with the help of econometric methods Auto Regressive Distributed Lags (ARDL) the national economy. This paper estimates the short term and the long-term model and then error correction model (ECM) has been obtained. Some of the important effects of corruption, including: The negative impact on employment Commercial and administrative ineffectiveness of government policies that cause a weak economy and unhealthy. On the other hand the money laundering will have damaging effect on the reduction of tax revenues, increased poverty, low levels of domestic production and employment. Given the role of these two phenomena in the economy of any country, the effect of money laundering and trafficking is important. Results indicate that these factors could affect the macro and longterm investments, especially in developing countries and can affect employment, output, and as a result it will reduce economic growth. So, the healthy economy can be used as an important factor of socio-economic welfare, production and poverty reduction in developing countries and affect the prosperity and wealth creation.