Causality of relationship between poverty and economic growth toward corruption in six Aseans country / Nor Shoria Fadillah Abdullah

Corruption is a complex phenomenon. It led the government to interfere where they do not need, and it affects their ability to formulate and implement policies in areas where government intervention is clearly needed-whether environmental regulations, health and safety regulations, social safety nets, macroeconomic stability, or the enforcement of contracts. Thus, corruption country will cause the poverty and also affect the gross domestic product. Poverty occurs when there are changes in the country’s economy when the country has economic problems. This study seeks to examine causality of relationship between corruption and poverty also economic growth. Six countries which are Malaysia, Philippines, Vietnam, Singapore, Indonesia and Thailand were involved in this study. The performance was measured by looking at the score of corruption percentage index. From the financial data for each country are collected from year 2009 until 2013. Through statistical tests of significance (P- value in regression model) revealed that there were strongly positive significance of poverty and economic growth can cause to corruption. This study contributes to the existing literature by providing an insight of relationship between corruption, poverty and economic growth in time of previous articles.