Corruption, natural resources and economic growth: Evidence from OIC countries

The study analyzes the impact of corruption and natural resources on economic growth by incorporating the role of per capita income and Information Communication Technologies (ICT). We use panel time series data from 1984 to 2016 for 43-member countries of Organization of Islamic Corporation (OIC). We apply Cross Sectional Autoregressive Distributed Lags (CS-ARDL) approach for estimation of results. The finding shows that corruption impedes economic growth. Natural resources have positive and significant effect on economic growth. Moreover, the combine effect of corruption and natural resources is positive. We split sample size according to low and high ICT diffusion economies and found that natural resources are inversely related with economic growth in low ICT diffusion economies. All other results are consistent through-out the analysis. Our finding affirms the existing hypothesis that corruption impedes economic growth in OIC countries. Our analysis also corroborates that ICT plays significant contribution in nexus between corruption and economic growth within OIC countries.