Economic Crimes, Income Inequality and Economic Development: The Case of Iran (1983-2006)

Authors

1 Assistant Professor of Economics, Department of Economics, University of Shiraz, Shiraz, Iran

2 Master of Economics, Graduated from Shahid Chamran University of Ahwaz

Abstract

Main target of this article is investigating the causality, long-run and short-run
relationships between economic crimes, income inequality, poverty and economic
development for Iranian economy in 1983-2006 period. The results of Engel-
Granger, Johansen-Juselius, and Pesaran, et al. (2001) cointegration tests and also
Toda-Yamamoto causality test shows that:
1. There is no long-run relationships between poverty, development, income
inequality and economic crimes.
2. Results of Toda-Yamamoto causality test shows a bilateral causality between
poverty and economic crimes. Also, there is no causality between income inequality
and economic crimes.
The article recommendation is to faster the economic growth, and adapting pro-poor
policies for decreasing economic crimes.

Keywords