The relationship between corruption and economic growth in 5 Southeast Asian countries / Hafiza Kamaruzzaman

The aim of this study is to investigate the relationship between all the independent variables which are Corruption, Inflation Rates, Foreign Direct Investment, and Government Expenditure to the Economic Growth in five selected Southeast Asian countries namely Malaysia, Singapore, Thailand, Philippines, and Indonesia. The study has used Panel Regression Model in order to discover the relationship between all the independent variables and economic growth. The annual percentages of each variables starting from 1995 until 2016. Based on the result, foreign direct investment and government expenditure have a positive relationship on the economic growth while inflation rates has negative relationship on the economic growth and corruption have insignificant negative relationship towards economic growth in 5 Southeast Asian countries namely Malaysia, Singapore,
Thailand, Philippines, and Indonesia. This shows that the economic growth which is Gross Domestic Product (GDP) are sensitive to changes in all of the independent variables except corruption. Furthermore, based on the result, government expenditure is the most significant factor that affecting the economic growth performance.