DOIONLINE 
DOIONLINE Publish In |
International Journal of Management and Applied Science (IJMAS)-IJMAS |
 Journal Home Volume Issue |
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Issue |
Volume-3,Issue-6 ( Jun, 2017 ) | |||||||||
Paper Title |
Corruption and Economic Growth: How does Piety Matter? | |||||||||
Author Name |
Mohamed Ben Mimoun, Asma Raies | |||||||||
Affilition |
Assoc. Prof at the College of Islamic Economics and Finance, Umm Al-Qura University Ass.Prof at the College of Business, Umm Al-Qura University | |||||||||
Pages |
55-58 | |||||||||
Abstract |
This study integrated the religious dimension into the economic analysis of corruption and growth. The idea along which, religion matters in explaining the extent of corruption -in addition to the conventional factors (institutional and economic ones)- was defend. Parting from the fact that Qur’an and Prophetic Narrations forbid corruption, the more pious is a Muslim, the lower should be his incentives for corruption. Hence, a higher level of piety in a society should translate into higher economic outcomes. The tractable analytical model developed in this study showed two possible channels for corruption to damage the long-run rate of economic growth. It also showed that, there is a minimum level of piety required for an economy to be productive. Below this threshold, the economy moves away towards an illegal rent-seeking situation. In addition, better quality of institutions and a reduced income tax contribute in lowering the threshold of piety required for an economy to move away from rent-seeking activity and towards productive activity. Keywords- Piety, Islamic References, Corruption, Public investments, Economic growth JEL Classification: E62, O43, P47 | |||||||||
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