Non-linear and causal effectiveness analysis of the corruption control index on the shadow economy

Document Type : Original Article

Authors

1 Economics, Central Tehran Islamic Azad University, Tehran, Iran

2 D

3 Q

4 O

Abstract

In sociology and economics Corruption control is seen as one of the national ideals in the constitution, and its failure is considered one of the problems of the Islamic Republic of Iran today. On the other hand, the shadow economy is a pathological system that causes distortions in the real economy, and its causes can be found in the benefits of the activities of actors outside the official sector, and in fact, in systemic corruption. The activity of these activists can be effective in the quality of governance and its effectiveness. Therefore, in this study, the relationship between corruption control and the shadow economy of Iran during the years 1374 to 1398 has been examined by using one of the governance indicators, which is corruption control, and using the NARDL method. The results showed that this relationship is negative in the short and long term. In the short term, with a one percent increase in corruption control, the size of the shadow economy will decrease to 0.023 percent, and in the long term, with the increase in corruption control, the shadow economy will decrease to 0.01 percent, according to the findings of the policy research of institutions and organizations. The trustee of governance regarding the improvement of governance indicators, including the corruption control index, distance seems to be necessary, a sustainable solution is to move towards smart systems and monitor and monitor the authenticity of goods and customs monitoring along with ending the insular politics in the economy.

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