Analysis of the Effect of Economic Corruption on Inflation in Selected Developing Countries: An Approach Based on Transmission Paths in Institutional Economics

Azimi Dokht Shouroki, Seyyed Mohsen

doi:10.30465/ce.2026.47131.1932

Analysis of the Effect of Economic Corruption on Inflation in Selected Developing Countries: An Approach Based on Transmission Paths in Institutional Economics

Document Type : Scientific-research

Author

Seyyed Mohsen Azimi Dokht Shouroki

Assistant Professor Department of Economic Sciences, Faculty of Humanities, Meybod university, Yazd, Iran

10.30465/ce.2026.47131.1932

Abstract

Abstract
Economic corruption, as an obstacle to the economic stability of developing countries, affects economic indicators, which is essential for policymaking. This study, using the principles of institutional economics to explain the channels of influence, has examined the effect of economic corruption on inflation in 10 developing countries. Using the panel data method and using the principles of institutional economics to explain the transmission paths of the effect, it has been investigated. The results showed that reducing corruption (increasing CPI) significantly reduces inflation. Real money growth was the strongest factor in increasing inflation, while economic growth and trade openness had a decreasing effect on inflation. Other estimation results have shown that the exchange rate also has a positive but small effect. These findings emphasize the need to strengthen appropriate institutional structures, control money growth, and expand trade to reduce inflation, especially in the countries under study.Result is based on other researches.

Keywords

Economic corruption

inflation

panel data

developing countries

New Institutional Economics

Subjects