The Study of Money Laundering Determinants with an Emphasis on the Role of Corruption and Informal Economy

Document Type : Original Article

Authors

1 Professor, Department of Economics, Faculty of Economics, Management and Administrative Science, Semnan University, Semnan, Iran.

2 M.A., Department of Economics, Faculty of Economics, Management and Administrative Science, Semnan University, Semnan, Iran.

Abstract

Money laundering is a global issue that destabilizes financial markets and has a negative impact on economic growth by increasing the risk of capital inflows. This paper empirically analyzes the factors affecting money laundering in countries, including Iran using regression analysis with cross-sectional data.
The results of estimating different models using cross-sectional data from 97 countries show that first: the spread of corruption and the informal economy positively and significantly affect money laundering, which is due to the role of money laundering in laundering dirty money from illegal transactions. Second: The combined effect of corruption and the informal economy on money laundering is also positive, in such a way that the informal economy, through the channel of corruption, strengthens the money laundering process at the countries level. Also, natural resource rents are another determinant of money laundering, and this relationship stems from the association of derived from natural resources and corruption. From a policy perspective, controlling money laundering on a global scale requires coordinated actions by countries to combat corruption, limit informal activities by facilitating business laws and regulations, and formalize informal activities.of rural tenants and the whole country also has an increasing trend.

Keywords

References

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اقتصاد دفاع و توسعه پایدار
Volume 10, Issue 38
December 2025
Pages 35-58

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