The Impact of Corruption on Innovation: A Comparative Study of High and Low Corruption Asian Countries

Fariba Hosseinimaram ¹ ( PhD student, Department of Economics, Arak Branch, Islamic Azad University, Arak, Iran )
ahmad sarlak ² ( Assistant Professor, Department of Economics, Arak Branch, Islamic Azad University, Arak, Iran )
Gholam Ali Haji ³ ( Department of Economics, Faculty of Management, Islamic Azad University, Arak, Iran )

Submited date : 2024-04-22 Accepted date : 2024-08-24

Keywords: corruption, innovation, panel data, Asian countries,

Abstract :

Innovation is one of the most important factors influencing the economic growth and development of countries. On the other hand, corruption in the economy has a long history that affects important economic variables, including innovation, which can be positive or negative depending on the economic conditions of the countries. The purpose of this article is to investigate the impact of corruption on innovation in Asian countries with high and low corruption in the period of 2008-2022 and compare the results using the panel data regression method. The results show that the effect of corruption on innovation is positive in Asian countries with high corruption and negative for Asian countries with low corruption. In countries with high corruption, due to long and complicated processes and low institutional quality, corruption has led to the acceleration of innovative activities. Corruption in these countries has helped to remove hard obstacles for investment and strengthen innovation and has been able to lubricate the economic wheel. However, in countries with a low level of corruption, through misallocation of resources, the motivations for innovation and the fields of competition for innovative activities have been reduced and it has a negative effect on it. Policies to reduce corruption and correct tough market conditions, reduce lengthy administrative bureaucracies and align laws with support for innovative activities can be effective in improving innovation.

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