The impact of the corruption on innovation in the OECD and MENA countries using the Panel Data Analysis during 2006-2016

Abstract

In this study, we aim to examine the relationship between corruption and innovation. The Corruption Perception Index (CPI) and the Partial Indicator of Innovation from the Global Competitiveness Index (GCI) were identified as variables for the study and the panel data analysis was used for the period 2006-2016. The study results revealed a positive relationship between the corruption perception and innovation (i.e. an inverse relationship between corruption and innovation) and that the fixed effects model is appropriate for the OECD countries, while random effects model is the most suitable for the MENA countries.