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Alfada, Anisah
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Economics, Econometrics & Finance Education

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Corruption and Economic Growth in ASEAN Member Countries Alfada, Anisah
Economics and Finance in Indonesia Vol. 65, No. 2
Publisher : UI Scholars Hub

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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.
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