Determinants of Corruption in ASEAN Countries
DOI:
https://doi.org/10.14738/abr.124.16840Keywords:
Corruption, FDI, Political stability, Internet usage, Regulatory quality, ASEANAbstract
This paper investigates the economic, institutional, and social determinants of corruption in ASEAN countries using unbalanced panel data over the period of 1996–2022. ASEAN has 10 countries, such as Brunei Darussalam, Cambodia, Indonesia, Lao People's Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Corruption is measured by the Corruption Perception Index published by Transparency International. Determinants of corruption are expected to be foreign direct investment, gross domestic product per capita growth, inflation, political stability, regulatory quality, and internet usage, based on the literature review. The empirical results show that increasing foreign direct investment, political stability, and regulatory quality in ASEAN countries can reduce corruption significantly, whereas internet usage is found to have a slightly significant positive effect on corruption. However, gross domestic product per capita growth and inflation are not determinants of corruption in ASEAN countries.
References
Schoeberlein, J., Corruption in ASEAN regional trends from the 2020 Global Corruption Barometer and country spotlights. Transparency International, 2020.
Quoc Bui, D., S. T. Bui, N. K. T. Le, L. M. Nguyen, T. T. Dau, and T. Tran, Two decades of corruption research in ASEAN: A bibliometrics analysis in Scopus database (2000-2020). Cogent Social Sciences, 2021. 7(1): 2006520. https://doi.org/10.1080/23311886.2021.2006520
Acaravci, A., S. Artan, P. Hayaloglu, and S. Erdogan, Economic and institutional determinants of corruption: The case of developed and developing countries. Journal of Economics and Finance, 2023. 47: p. 207-231. https://doi.org/10.1007/s12197-022-09595-7
Gani, A., The empirical determinants of corruption in developing countries. Perspectives on Global Development and Technology, 2017. 16: p. 392-409.
Sanchez, P. M. S., J. L. P. Sarte, and E. Dela Cruz, A cross-sectional data analysis on the different economic determinants of corruption in the Asia-pacific region in the year 2018. Journal of Economics, Finance and Accounting Studies, 2022. 4(2): p. 164-183.
Shabbir, G. and A. R. Butt, Socioeconomic determinants of corruption: A cross country evidence and analysis. Forman Journal of Economic Studies, 2014. 10: p. 79-104.
ElBahnasawy, N. G. and C. F. Revier, The determinants of corruption: Cross-country-panel-data analysis. The Developing Economies, 2012. 50(4): p. 311-333. doi: 10.1111/j.1746-1049.2012. 00177.x
Serra, D., Empirical determinants of corruption: A sensitivity analysis. Public Choice, 2006. 126: p. 225-256.
Ali, A. M. and H. S. Isse, Determinants of economic corruption: A cross-country comparison. Cato Journal, 2003. 22(3): p. 449-466.
Liu, Y. and H. Feng, Tax structure and corruption: Cross-country evidence. Public Choice, 2015. 162: p. 57-78. doi: 10.1007/s11127-014-0194-y
Badinger, H. and E. Nindl, Globalization and corruption, revisited. The World Economy, 2014. p. 1424-1440. doi: 10.1111/twec.12156
Brol, M., Institutional determinants of corruption. Ekonomia I Prawo. Economics and Law, Polszakiewicz B., Boehlke J. (ed.), 2016. 15(1): p. 21–32. doi: http://dx.doi.org/10.12775/EiP.2016.002
Gnimassoun, B. and J. K. Massil, Determinants of corruption: Can we put all countries in the same basket? The European Journal of Comparative Economics, 2019. 16(2): p. 239-276. http://dx.doi.org/10.25428/1824-2979/201902-239-276
Madathil, J. C., V. P. Shanmugam, and A. Thippillikat, Crude oil price and government effectiveness: The determinants of corruption in oil abundant states. Journal of Public Affairs, 2022. 22(Suppl. 1): e2767. https://doi.org/10.1002/pa.2767
Sharma, C. and S. R. Paramati, does financial development reduce the level of corruption? Evidence from a global sample of 140 countries. International Journal of Finance & Economics, 2021. 26: p. 5093–5109. https://doi.org/10.1002/ijfe.2056
Ntom Udemba, E., I. Onyenegecha, and G. Olasehinde-Williams, Institutional transformation as an effective tool for reducing corruption and enhancing economic growth: A panel study of west African countries. Journal of Public Affairs, 2022. 22: e2389. https://doi.org/10.1002/pa.2389
Chang, E. and M. A. Golden, Sources of corruption in authoritarian regimes. Social Science Quarterly, 2010. 91(1): p. 1-20.
Evrensel, A. Y., Institutional and economic determinants of corruption: A cross-section analysis. Applied Economics Letters, 2010. 17: p. 551-554. doi: 10.1080/13504850802297814 Li, L. (2024). Determinants of Corruption in ASEAN Countries. Archives of Business Research, 12(4). 75-81.
Goel, R. and M. A. Nelson, Economic freedom versus political freedom: Cross-country influences on corruption. Australian Economic Papers, 2005. p. 121-133.
Lederman, D., N. V. Loayza, and R. R. Soares, Accountability and corruption: Political institutions matter. Economics & Politics, 2005. 17(1): p. 1-35.
Ahmed, E. and L. A. Issa, Key determinants of corruption in the middle east and north Africa. International Journal of Research in Business and Social Science, 2022. 11(6): p. 410-420.
Hunady, J., The effect of the internet on corruption awareness and corruption incidence in the EU. Information Policy, 2019. 24: p. 75-89. Doi: 10.3233/IP-180086
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Li Li

This work is licensed under a Creative Commons Attribution 4.0 International License.