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Abdul Karim, Bakri, Mr
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Economics, Econometrics & Finance Education

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Corruption and Foreign Direct Investment (FDI) in ASEAN-5: A Panel Evidence Abdul Karim, Bakri, Mr; Karim, Zulkefly Abdul
Economics and Finance in Indonesia Vol. 64, No. 2
Publisher : UI Scholars Hub

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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-5 governments 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.
Co-Authors Zulkefly Abdul Karim