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The Effect of Corruption on Internal Conflict in Iran Using Newspaper Coverage

Author

Listed:
  • Mohammad Reza Farzanegan

    (Philipps-Universität Marburg)

  • Reza Zamani

    (Allameh Tabataba'i University)

Abstract

We study the effect of a corruption reflection index on internal conflict in Iran using a novel measure of corruption based on newspaper coverage. We use the Vector Autoregression (VAR) model and its applied tools of impulse response and variance decomposition analyses to track the response of protests to shocks in corruption levels. Using annual data from 1962 to 2019, we find a positive and significant response of protests to a positive shock in the news-based corruption reflection index. We also show that economic growth and military spending are the main channels where higher corruption may lead to higher internal protests.

Suggested Citation

  • Mohammad Reza Farzanegan & Reza Zamani, 2022. "The Effect of Corruption on Internal Conflict in Iran Using Newspaper Coverage," Working Papers 1606, Economic Research Forum, revised 20 Nov 2022.
    • Handle: RePEc:erg:wpaper:1606
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    References listed on IDEAS

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    Cited by:

    1. Mohammad Reza Farzanegan & Reza Zamani, 2023. "Does Oil Corrupt? Evidence from a Multivariate VAR in Iran," MAGKS Papers on Economics 202321, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Sajjad Faraji Dizaji & Mohammad Reza Farzanegan, 2024. "The Impact of US Trade Sanctions on the Global Trade of Target Countries: Do the Political Institutions of the Targets Matter?," CESifo Working Paper Series 10910, CESifo.
    3. Cheratian, Iman & Goltabar, Saleh & Gholipour, Hassan F. & Farzanegan, Mohammad Reza, 2024. "Finance and sales growth at the firms level in Iran: Does type of spending matter?," Research in International Business and Finance, Elsevier, vol. 67(PB).

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    More about this item

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling

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