The Phenomenon of Economic Corruption and its Impact on Economic Growth in Islamic Countries in the Light of Transparency International Indicators

Abstract

The study aimed to analyze the impact of corruption perceptions on economic growth in Islamic countries, using an econometric model linking various economic variables and the corruption perception index. The model was estimated using cross-sectional data for the year 2014 through the ordinary least squares method. The findings indicated a significant negative impact of corruption on economic growth in Islamic countries, where corruption hinders investment and creates distortions in government revenues and expenditures. The study also highlighted that Islam has mechanisms and tools to avoid and combat corruption. The recommendations included the necessity to reform the ethical and value systems, apply the principle of transparency, and activate money protection mechanisms according to Islamic legal and administrative perspectives. Furthermore, the study emphasized the importance of simplifying the business environment, issuing a governance guide for the public sector to enhance integrity and transparency. The study concluded that corruption is a major obstacle to sustainable development and hampers economic growth in Islamic countries.