The relationship between shadow economy and corruption and innovation

Document Type : Scientific-research

Authors

1 Master of Economics, Departmet of Economics, Faculty of Economics, Management and Accounting, Yazd University, Yazd, Iran

2 Associate Professor of Economics, Departmet of Economics, Faculty of Economics, Management and Accounting, Yazd University, Yazd, Iran

3 Master of Economics, Departmet of Economics, Faculty of Economics, Management and Accounting, Yazd, University, Yazd, Iran

10.30465/ce.2022.39089.1725

Abstract

Undoubtedly the ability to innovate and successful product marketing is one of the most important factors in the global competitiveness of economies over the next decade. In other words, innovative activities are a key factor in economic progress and prosperity, as well as a potential factor in meeting global challenges in the economic and social spheres. Therefore, identifying and strengthening the grounds for creating innovation must be studied that have been addressed in this research. The subject of this study is to investigate the effect of shadow economy and corruption on innovation in Iran in the period (2017-1997) using the approach of least partial equations in PLS software. The results of this article show a positive relationship between the prevalence of corruption and the shadow economy and innovation in Iran. Unemployment, per capita income, democracy and direct tax burden were identified as the causes and the ratio of foreign direct investment to GDP, GDP growth and innovation as the effects of corruption.

Keywords


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