The relation between corruptions & Malaysia's economic growth / Muhammad Muayyad Mohd Pauzi

This study examines the long-term relationship between corruption and economic growth in Malaysia between 1984 and 2013. This study aims to determine how corruption affects economic growth in Malaysia through various transmission channels including trade openness, government spending, investment and human capital. The Autoregressive Distributed Lag (ADRL) method was used to examine whether there is a long-term relationship between corruption and growth in Malaysia, taking into account other macroeconomic variables such as trade openness, investment, human capital, and government spending. Using this approach would establish a negative correlation between corruption and growth in the long run, but it would have a positive effect on economic growth through trade opening and government spending channels. However, the impact of FDI and human capital on Malaysia's economic growth is not statistically significant. This result suggests that corruption is not good for Malaysia's economic growth in the long run, and from a policy perspective, the main focus of policymakers should be on reducing corruption and increasing Malaysians' anti-corruption awareness to achieve a high-speed economy in Malaysia Increase.