Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Combined Effect of Economic Variables on Fraud, a Survey of Developing Countries
Issue: Vol. 10, No 2, 2017
Published date: 06-2017 (print) / 06-2017 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Mahdi Omidi
Dalian University of Technology

Qingfei Min
Dalian University of Technology

Mohammad Omidi
Iran University of Science and Technology
Keywords: fraud, panel data, GDP, industrial sector, service sector, economic variables
DOI: 10.14254/2071-789X.2017/10-2/20
Index PUBMS: 322b2ae6-0050-11e8-94c4-fa163e5d4f72
Language: English
Pages: 267-278 (12)
JEL classification: D70, D73, K40

Recently, many researchers have examined the factors affecting fraud and introduced the elements required for fraud to exist. In this paper, we define these variables in two broad groups of economic and non-economic variables. We examine the combined effect of economic variables on fraud. We used 7 variables namely; fraud, the size of government, democracy, per capita income, inflation, the total value added of the industrial sector divided by GDP, and the total value added of the service sector divided by GDP. The predictive method used in this study is panel data. Our research findings show that democracy and GDP tend to have a reverse effect on fraud, whereas the size of the government and inflation are positively associated with fraud. Furthermore, we describe the association between industrial sector and fraud and also the service sector and fraud.


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