Analysis of the Impact of Corruption on GDP Per Capita (Case Study: ASEAN Countries 2010 - 2020)


Authors : Dr. Nugroho SBM; Fitri Bahari

Volume/Issue : Volume 7 - 2022, Issue 5 - May

Google Scholar : https://bit.ly/3IIfn9N

Scribd : https://bit.ly/3ND38y6

DOI : https://doi.org/10.5281/zenodo.6601099

- This study aims to analyze the effect of foreign investment, and corruption, on GDP per capita in ASEAN countries from 2010-to 2020. This study uses GDP per capita as the dependent variable, Foreign Investment (FDI), and corruption uses the Corruption Perception Index as the independent variable. The data used in this study is panel data (time-series data for eleven years from 2010-to 2020 and 10 cross-sectional data representing ASEAN countries). The analysis method of this research uses a fixed-effect model panel data. Panel data regression analysis was used to determine the effect of independent variables on economic growth. The estimation results in this study indicate that the estimation results show that the foreign investment variable (FDI) has a positive and significant effect on the five percent significant levels of GDP per capita in ASEAN countries. The variable corruption has a negative and significant effect on the five percent significant level of GDP per capita in ASEAN countries. Recommendations for further research need to be analyzed, on the contrary, namely economic growth in the per capita GDP of ASEAN countries. More serious efforts are needed for policies to reduce corruption because it has been proven to harm economic growth.

Keywords : Corruption, FDI, GDP per capita, Economic Growth.

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