Sanda Aditiya Arsandi
Universitas Gadjah Mada

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Regional head corruption and industrial growth: Evidence from Mojokerto Regency and City Sanda Aditiya Arsandi
Integritas: Jurnal Antikorupsi Vol 8 No 1 (2022): INTEGRITAS: Jurnal Antikorupsi
Publisher : Komisi Pemberantasan Korupsi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32697/integritas.v8i1.857

Abstract

There is a difference of opinion amongst experts regarding the impact of corruption on industrial growth. Many people believe that corruption will hinder industrial growth, but several studies (especially in Asia) have found that corruption is the grease for the wheel of business. This study seeks to examine the relationship between business and corruption by using case study methods and quantitative content analysis techniques on conditions in Mojokerto Regency and City, two regions in which industry is an important development sector. In the last four periods, the former Regent and Mayor of Mojokerto have been reported as being involved in corruption cases. Using secondary data from Badan Pusat Statistik, we examine the relationship between corrupt governments in the Regency and City of Mojokerto on industrial growth using secondary data from Badan Pusat Statistik (BPS). By using quantitative analysis on several parameters of industry growth (such as the number of workers, investment value, number of firms and number of products), we find that the regional heads who were involved in several corruption cases in both Mojokerto Regency and Mojokerto City could not bring about positive change in industrial growth during their tenure, instead overseeing some decline in both regions.
The grease of the wheel: The correlation between corruption, regional revenue and expenditure in Indonesia Sanda Aditiya Arsandi
Integritas: Jurnal Antikorupsi Vol 8 No 2 (2022): INTEGRITAS: Jurnal Antikorupsi
Publisher : Komisi Pemberantasan Korupsi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32697/integritas.v8i2.938

Abstract

Previous research has revealed that corruption is considered to have two types of effects on the economy. Corruption is seen as an obstacle to the economy but also as a "grease of the wheel" that accelerates the rotation of economic cogs. This study aims to determine the position of corruption in Indonesia after fiscal decentralization. The study was conducted based on secondary data obtained from the publications of the Central Statistics Agency and the Corruption Eradication Commission. The test was carried out using correlation analysis from 2006-2020 to see the effect of corruption in the regions and private sector on its economic dimension. Results show that corruption in the regions has a significant positive effect on corruption in the private sector and the realisation of regional revenue and expenditure. These results support the argument that in Indonesia, the phenomenon of corruption as a grease of the wheel still occurs.