Jurnal Perencanaan Pembangunan
Vol. 8 No. 1 (2024): June 2024

Analyzing the Far-reaching Effects and Causality: Investment, Corruption, Unemployment, and Economic Growth in Asia-Pacific Nations Over Time

Tama, M. Julian (Unknown)



Article Info

Publish Date
10 Jun 2024

Abstract

This study investigates the causal connections and both short-term and long-term associations among corruption, investment, unemployment, and per capita economic growth across twenty-two Asia-Pacific nations spanning from 2012 to 2020. The research employs Granger causality and Vector Error Correction Model methodologies to tackle the research inquiries. The empirical results unveil bidirectional causality between corruption and per capita economic growth, whereas the unemployment rate and per capita economic growth share a unidirectional relationship. Conversely, no causal linkage is found among the remaining variables. In the short run, corruption has no significant impact on per capita economic growth and unemployment but does significantly and adversely affect the investment rate. On the other hand, in the long run, corruption significantly and negatively influences per capita economic growth. The investment rate and unemployment, in the long term, exhibit a substantial and positive influence on per capita economic growth. Thus, corruption serves as an obstacle to economic growth rather than a facilitator.

Copyrights © 2024






Journal Info

Abbrev

jpp

Publisher

Subject

Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance Energy Environmental Science Social Sciences

Description

JPP will periodically present papers related to development planning and policy in Indonesia, linking academic and scientific knowledge to public policy. JPP takes a position as one of the bridging knowledge to policy tools. The subjects are each development processes, from the planning, ...