THE EFFECT OF CORRUPTION ON ECONOMIC GROWTH IN ASIAN COUNTRIES 5 MEMBERS OF THE ASIA PACIFIC ECONOMIC COOPERATION (APEC)
Abstract
Corruption is one of the many global issues that are endlessly discussed and debated. Corruption is an issue that has long existed in many countries, both developed and developing countries. Corruption has caused various losses in many sectors, with the effects of corruption being able to make the economy chaotic and influence a country's economic growth. The purpose of this study is to see how the variables of Corruption, Foreign Direct Investment (FDI), Inflation, Trade Openness, and Labor Force Participation affect economic growth in five Asian member countries of the Asia Pacific Economic Cooperation (APEC), which include Indonesia, China, the Philippines, Thailand, and Malaysia, from 2002 to 2021. The method used is panel data regression fixed effect model (FEM). The results show that the corruption perception index positively affects economic growth in 5 Asia Pacific countries. FDI has no effect on economic growth. Inflation has a positive effect on economic growth. Trade Openness has a negative impact on Economic Growth. And Labor Force Participation has a negative effect on Economic Growth.
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Universitas Ahmad Dahlan
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Yogyakarta
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