Mohamad Naufal Nasharuddin
UNIMAS

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Corruption and Foreign Direct Investment (FDI) in ASEAN-5: A Panel Evidence Bakri Abdul Karim; Zulkefly Abdul Karim; Mohamad Naufal Nasharuddin
Economics and Finance in Indonesia Volume 64, Number 2, December 2018
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (176.816 KB) | DOI: 10.47291/efi.v64i2.594

Abstract

This paper examines the effects of corruption on the inflow of FDI in ASEAN-5 countries by controlling twomacroeconomic variables namely Gross Domestic Product (GDP) and inflation. Using a static panel dataestimation, the results show the significant relationship between corruption and Gross Domestic Product(GDP) on the inflow of FDI in ASEAN-5. This results indicate that less corrupted countries and largermarket size would attract more FDI inflows. The policy implications from this study suggests that ASEAN-5governments need to have concerted and continues efforts in improving the integrity and credibility of theiradministration and transactions. In addition, maintaining their sustainable of economic growth is also crucial as a full factor in attracting more FDI inflows in future.