{"title":"Oil rents shocks and corruption in Iran","authors":"Mohammad Reza Farzanegan, Reza Zamani","doi":"10.1111/rode.13149","DOIUrl":null,"url":null,"abstract":"We investigate the response of the news‐based corruption reflection index to positive shocks in oil rents in Iran. Using annual data spanning from 1962 to 2019, we employ the vector autoregressive model and analyze generalized impulse responses. Our findings reveal a statistically significant and positive (increasing) response of corruption to positive oil rent shocks. The primary mechanisms through which this relationship operates encompass inflation, increased military expenditures, and the erosion of democratic institutions. Our results demonstrate robustness when subjected to alternative corruption measurements, and when considering the role of internal conflict. The outcomes remain consistent regardless of the variable order in the estimation process. Additionally, we offer context from Iran and expound on clientelism in public investment projects, providing insight into how oil rents may contribute to corruption.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":"15 1","pages":""},"PeriodicalIF":2.0000,"publicationDate":"2024-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Review of Development Economics","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1111/rode.13149","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"DEVELOPMENT STUDIES","Score":null,"Total":0}
引用次数: 0
Abstract
We investigate the response of the news‐based corruption reflection index to positive shocks in oil rents in Iran. Using annual data spanning from 1962 to 2019, we employ the vector autoregressive model and analyze generalized impulse responses. Our findings reveal a statistically significant and positive (increasing) response of corruption to positive oil rent shocks. The primary mechanisms through which this relationship operates encompass inflation, increased military expenditures, and the erosion of democratic institutions. Our results demonstrate robustness when subjected to alternative corruption measurements, and when considering the role of internal conflict. The outcomes remain consistent regardless of the variable order in the estimation process. Additionally, we offer context from Iran and expound on clientelism in public investment projects, providing insight into how oil rents may contribute to corruption.
期刊介绍：
The Review of Development Economics is a leading journal publishing high-quality research in development economics. It publishes rigorous analytical papers, theoretical and empirical, which deal with contemporary growth problems of developing countries, including the transition economies. The Review not only serves as a link between theorists and practitioners, but also builds a bridge between development economists and their colleagues in related fields. While the level of the Review of Development Economics is academic, the materials presented are of value to policy makers and researchers, especially those in developing countries.
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