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Control of Corruption and Economic Growth in Developing ASEAN Countries

Author

Listed:
  • Hady Sutjipto
  • Saharuddin Didu
  • Rah Adi Fahmi Ginanjar
  • Tony Santika Chendrawan
  • Andi Kustanto

Abstract

Corruption reflects governance failure, which increases transaction costs, weakens regulatory certainty, and ultimately suppresses economic growth. This study analyses the effect of corruption control on economic growth in eight developing ASEAN countries from 2012 to 2024. Panel data econometric methods using fixed effects models with the Driscoll–Kraay standard errors (FE-DKSE) have been employed to estimate the effect, whilst feasible generalised least squares (FGLS) and panel-corrected standard errors (PCSE) are applied as robustness checks to validate the findings. The results consistently indicate that corruption control exerts a positive and significant effect on economic growth, operating through the strengthening of the investment climate, macroeconomic stability, and the effectiveness of public policies. These findings underscore the importance of prioritising anti-corruption reforms, strengthening the rule of law, improving human capital quality, and enhancing the productivity of public spending as central pillars of sustainable economic development in the region.

Suggested Citation

  • Hady Sutjipto & Saharuddin Didu & Rah Adi Fahmi Ginanjar & Tony Santika Chendrawan & Andi Kustanto, 2026. "Control of Corruption and Economic Growth in Developing ASEAN Countries," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 300-329.
    • Handle: RePEc:bas:econth:y:2026:i:2:p:300-329
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    More about this item

    JEL classification:

    • H00 - Public Economics - - General - - - General
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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