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Abstract

Corruption is a global issue that remains unresolved to this day. It can lead to a decrease in investment and inefficiency in government spending allocation, impacting economic growth. Therefore, controlling corruption is a crucial issue that cannot be underestimated. This study uses panel data from 2012 to 2022 in ASEAN-5 countries (Indonesia, Malaysia, Vietnam, Laos, and Thailand). The method used is panel data regression with a fixed-effect model (FEM). The results indicate that foreign direct investment (FDI) has a significant positive effect on economic growth, while the corruption perception index and unemployment have no significant impact in the ASEAN-5 countries. This study suggests that promoting FDI is key to ASEAN-5's economic growth. Additionally, addressing corruption and unemployment through governance and labor market reforms is also crucial for sustainable development in the region.

Keywords

Corruption perception index Foreign direct investment Unemployment Economic growth

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Copyright (c) 2024 Putri Amalia Husna, Muhammad Nasir

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Husna, P. A., & Nasir, M. (2024). The Role of Corruption, FDI, and Unemployment in ASEAN-5 Economic Growth. Grimsa Journal of Business and Economics Studies, 1(2), 75–85. https://doi.org/10.61975/gjbes.v1i2.28
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