Corruption, Growth, and FDI Spillovers: Evidence from Emerging Market Economies
english
Abstract
Countries with substantial increases in economic growth and similar characteristics to developed countries are usually referred to as emerging markets. The problem faced by emerging market countries is the need for more capital investment into the country so that domestic savings are added through efforts to find buy and imports. This study looks at the effect of economic growth, trade openness, control of corruption, and regulatory quality on FDI, specifically in developing countries. The analysis method used the Generalised Method of Moments panel. The data used from 2014-2021 with the analysis areas of Indonesia, Malaysia, the Philippines and Thailand. The results showed that the economic growth variable had a positive and significant effect on FDI, the trade openness variable had a negative and significant effect on FDI, the control of cor-ruption variable had a negative and significant effect on FDI, and the regulatory quality variable had a positive and significant effect on FDI in ASEAN emerging market countries.
Keywords: Growth, Trade openness, Control of corruption, and Regulatory quality
References
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Shleifer, A., & Vishny, R. W. (1993). Corruption. Quarterly Journal of Economics, 108(3), 599-617.
World Bank. (2023, July 1). Foreign Direct Investment, Net Inflow (Bop, current US$). Diambil kembali dari The World Bank: https://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD
Agyei-Mensah, B. K. (2017). The Relationship Between Corporate Governance, Corruption, and Forward-looking Information Disclosure: a Comparative Study. Corporate Governance (Bingley), 17(2), 284-304. doi:https://doi.org/10.1108/CG-11-2015-0150
Aidt, T. S. (2003). Economic Analysis of Corruption: A Survey. The Economic Journal, 113(491), 632-652.
Anwar, C. (2016). Faktor-faktor Yang Mempengaruhi Foreign Direct Investment (FDI) di Kawasan Asia Tenggara. Media Trend, 11(2), 175. doi:https://doi.org/10.21107/mediatrend.v11i2.1621
Arellano, M., & Bond, S. (1991). Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Applocation to Emplaoyment Equations. The Review of Economic Studies, 58(2), 277-297. doi:https://doi.org/10.2307/2297968
Arellano, M., & Bover, O. (1995). Another Look at The Instrumental Variable Estimation of Error-Components Models. Journal of Econometrics, 68(1), 29-51. doi:https://doi.org/10.1016/0304-4076(94)01642-D
Arsyad, L. (2010). Ekonomi Pembangunan (5th ed.). Yogyakarta: UPP STIM YKPN.
ASEAN. (2022). ASEAN @55: Navigating a Changing Global Order. Singapore: ASEAN FOCUS.
Baltagi, B. H. (2005). Econometric Analysis of Data Panel. England: John Wiley & Sons Ltd.
Belgibayeva, A., & Plekhanov, A. (2016). Does Corruption Matter for Sources of Foreign Direct Investment? London: University of London.
Blundell, R., & Bond, S. (1998). Initial Conditions and Moment Restrictions in Dynamic Panel Data Models. Journal of Econometrics, 87, 115-143.
Corporate Finance Institute. (2023, July 1). Diambil kembali dari http://www.corporatefinanceinstitute.com
Daniel Kaufmann, A. K., & Mastruzzi, M. (2009). Governance Matters VIII: Aggregate And Individual Governance Indicators 1996-2008. Policy Research Working Papers. doi:https://doi.org/10.1596/1813-9450-4978
Fazira, D. R., & Cahyadin, M. (2018). The Impact of Interest Rate, Corruption Perception Index. and Economic Growth on Foreign Direct Investment in ASEAN-6. Jurnal Keuangan dan Perbankan, 22(4), 707-713. doi:. https://doi.org/10.26905/jkdp.v22i4.2123
Goswami, G. G., & Haider, S. (2014). Does Political Risk Deter FDI inflow? An Analytical Approach Using Panel Data and Factor Analysis. Journal of Economic Studies, 41(2), 233-252. doi:https://doi.org/10.1108/JES-03-2012-0041
Habib, M., & Zurawicki, L. (2002). Corruption and Foreign Direct Investment. Journal of International Business Studies, 33(2), 291-307. doi:https://doi.org/10.1057/palgrave.jibs.8491017
Hoang, H. H. (2012). Foreign Direct Investment In Southeast Asia: Determinants And Spatial Distribution. Vietnam: Development and Policies Research Center .
Honig, A. (2008). Do Improvements in Government Quality Necessarily Reduce The Incidence of Costly Sudden Stops? Journal of Banking & Finance, 32(3), 360-373. doi:https://doi.org/10.1016/j.jbankfin.2007.04.030
Khushnood, E., Channa, Z. H., Bhutto, M., & Erri, M. A. (2020). Impect of Good Governance Indicators on The Inflow of Foreign Direct Investment (FDI) in Pakistan. NICE Research Journal of Social Science, 13(2), 69-83. doi:https://doi.org/10.51239/nrjss.v0i0.175
Lambsdorff, J. G. (2002). Corruption and Rent-Seeking. Public Choice, 113(1/2), 97-125.
Lui, F. T. (1985). An Equilibrium Queuing Model of Bribery. Journal of Political Economy, 93(4), 760-781.
Marlina, R., Bahri, E. S., Wibowo, H., & Wiharjo, S. M. (2023). Indentification of Text Allowance Policies and Mechanisms in Indonesia. ITQAN: Journal of Islamic Economics, Management, and Finance, 2(1), 10-17. doi:https://doi.org/10.57053/itqan.v2i1.16
Mudiyanselage, M. M., Epuran, G., & Tescasiu, B. (2021). Causal Links Between Trade Openness and Foreign Direct Investment in Romania. Journal Risk Financial Management, 14(3), 90. doi:https://doi.org/10.3390/jrfm14030090
Mukhopadhyay, D., & Das, D. (2018). FDI Inflows and Military Expenditure: A Study Across the Emerging Market Economies. Dalam D. Mukhopadhyay, & D. Das, What is Control of Corruption (hal. 15). India: Handbook of Research on Military Expenditure on Economic and Political Resources. doi: 10.4018/978-1-5225-4778-5.ch012
Olayiwola, W., Osabuohien, E., Okodua, H., & Ola-David, O. (2015). Economic Integration, Trade Facilitation and Agricultural Exports Performance in ECOWAS Sub-Region. Regional Integration and Trade in Africa, 31-46. doi:10.1057/9781137462053_3
Robertson, C. J., & Watson, A. (2004). Corruption and Change: The Impact of Foreign Direct Investment. Strategic Management Journal, 25(4), 385-396. doi:10.1002/smj.382
Sabir, S., Rafique, A., & Abbas, K. (2019). Institutions and FDI: Evidence from Developed and Developing Countries. Financial Innovation, 5(8), 1-20. doi:https://doi.org/10.1186/s40854-019-0123-7
Salvatore, D. (2007). Makroekonomi (4th ed.). Jakarta: Erlangga.
Sari, G. A., & Baskara, I. G. (2018). Pengaruh Pertumbuhan Ekonomi, Suku Bunga, dan Nilai Tukar Terhadap Investasi Asing Langsung di Indonesia. E-Jurnal Manajemen Unud, 7(7), 4002-4030. doi:https://doi.org/10.24843/EJMUNUD.2018.v7.i07.p20
Shleifer, A., & Vishny, R. W. (1993). Corruption. Quarterly Journal of Economics, 108(3), 599-617.
World Bank. (2023, July 1). Foreign Direct Investment, Net Inflow (Bop, current US$). Diambil kembali dari The World Bank: https://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD
Published
2024-02-03
Section
Articles
Copyright (c) 2024 Firsty Ramadhona Amalia Lubis, Amir Hidayatulloh, Nurul Azizah Az Zakiyyah
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