Abstract:
Corruption is almost exist in all human societies throughout thehistory. Any continuation of corruption in different ages made most ofresearchers and policy makers to consider corruption as an inevitablepart of human being challenges (Mukum, 2008).Administrative corruption is common in most developed and/orunder –developed countries.In other words, there is no country in the world that has notexperienced a form administrative corruption. In fact, where there is agovernment, there will be administrative corruption as well. For thispurpose, the present paper will firstly explain and define corruption. Thenwe will concert relation between administrative corruption and economicgrowth in low income and medium income countries by using panel dataregression models.According to the results, it was revealed that there is a converse andmeaningful relation between corruption and economic growth.Furthermore, there is a direct & meaningful relation between capital stockand labor force with economic growth in low income and medium incomeCountries.
Machine summary:
Vol. 1 / No. 1 / winter 2011 The viewpoint of the first group They believe that corruption will the increase of economic growth rate .
Among the views of this group, the following are presented: Leff (1964) believes that corruption can help with the economic growth by creating the possibility of a higher rate of investment.
The experience of developing countries shows Vol. 1 / No. 1 / winter 2011 that most of public staffs are pursing primarily their interests and incomes in performing their duties rather than economic growth.
In addition, in some countries, the absence of democratic governance causes the massive administrative corruption, weak infrastructures, high costs of business, fall of investment, economic growth, employment, incomes, national, regional and international instability and vast disappointment of citizens (Kaufman et al, 2007:17).
He entered variables such as physical, human capitals and government expenditure and finally concluded that corruption has a negative impact on economic growth.
Vol. 1 / No. 1 / winter 2011 Countries under Investigation In order to estimate the regression model, the data related to economic and non-economic variables affecting economic growth of countries have been used as presented in Table 1.
Vol. 1 / No. 1 / winter 2011 Also data related to the economic growth (dependent variable), capital assets and labor force (dependent variable) were collected through internet site of World Bank.
So the hypothesis of H0 that there is no relation between economic growth of low income and medium income countries and capital assets is rejected at the confidence level of 95%.