Corruption and Foreign Direct Investment (FDI) in ASEAN-5 : A Panel Evidence

Bakri, Bin Abdul Karim and Zulkefly, Bin Abdul Karim and Mohamad Naufal, Bin Nasharuddin (2019) Corruption and Foreign Direct Investment (FDI) in ASEAN-5 : A Panel Evidence. Economics and Finance in Indonesia, 64 (2). pp. 145-156. ISSN 2442-9260

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This paper examines the effects of corruption on the inflow of FDI in ASEAN-5 countries by controlling two macroeconomic variables namely Gross Domestic Product (GDP) and inflation. Using a static panel data estimation, 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 larger market 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 their administration and transactions. In addition, maintaining their sustainable of economic growth is also crucial as a full factor in attracting more FDI inflows in future.

Item Type: E-Article
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Uncontrolled Keywords: corruption; Foreign Direct Investment (FDI); ASEAN-5; static panel data, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, research, Universiti Malaysia Sarawak.
Subjects: H Social Sciences > HA Statistics
H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Depositing User: Abdul Karim
Date Deposited: 22 Jan 2019 01:24
Last Modified: 17 Jun 2020 07:06

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