CORRUPTION, RELIGION AND ECONOMIC PERFORMANCE IN OPEC COUNTRIES: AN ANALYSIS

Abstract

The analysis ofcorruptionininternational business is a relativelynew but an important phenomenon and for the last two decades many research  works have attempted tocapture the economicimpactof the corruption ina  country. None of such works has addressed the issue of corruption and  religion together inthe contextof developing but resource rich economies.  To fill this gap, this study examines the incidence of corruption and religion  for  economic  performance  for severalOPECcountries. Statistical methodology relies on panelestimation and simultaneous panelestimation  in additiontotraditional ordinaryleas squares errors regression models.  Resultsshow thateconomicperformance (measured by Real  Gross  Domestic Product) responds positively to less corruption and the dominant  religion, especially Islam, inour study. Needless tosay, thisstudy also  suffers from limitations, regarding the  measurement  of  corruption,  limitation of dataand possible exclusion of other explanatory variables in the model.  

JEL Classification:F2;F21;F23;H2;O16.  

Key words:Corruption, Religion, EconomicPerformance, International Business, OPEC