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Corruption and Economic Growth in ASEAN Member Countries

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  • Anisah Alfada

    (Graduate School of Asia Pacific Studies, Waseda University)

Abstract

This study examines the effect of corruption on economic growth and determines the corruption threshold in nine ASEAN member countries in 1999–2016. This study assesses whether the effect of corruption is growth-enhancing or growth-deteriorating in different corruption threhsolds using a sample-splitting and threshold model. In contrast to the existing literature, this study does not group countries based on income level and therefore can reveal the corruption level of a country relative to a corruption threshold. The estimation results show that the adverse effect of corruption on economic growth is stronger for countries with corruption levels above the second threshold of 80.

Suggested Citation

  • Anisah Alfada, 2019. "Corruption and Economic Growth in ASEAN Member Countries," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 65, pages 111-131, Desember.
    • Handle: RePEc:lpe:efijnl:201908
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    References listed on IDEAS

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    More about this item

    Keywords

    corruption; economic growth; threshold model; ASEAN;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H0 - Public Economics - - General
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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