Journal of Iranian Economic Issues

Journal of Iranian Economic Issues

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
Assistant Professor of Department of Economic Sciences, 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
Subjects

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Volume 12, Issue 23 - Serial Number 23
October 2025
Pages 139-158

  • Receive Date 04 November 2024
  • Revise Date 19 May 2025
  • Accept Date 14 June 2025