DOES CORRUPTION HAS A POSITIVE IMPACT ON ECONOMIC GROWTH?

Authors

  • Widhi Ariestianti Rochdianingrum Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) Surabaya
  • Nanis Setyorini Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) Surabaya
  • Lailatul Amanah Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) Surabaya

DOI:

https://doi.org/10.24034/icobuss.v4i1.535

Abstract

The problem of corruption is a common problem and continues to this day in Indonesia. The level of corruption that does not improve causes losses and inefficiency in the economy. The high level of corruption has been an obstacle to economic progress and growth in Indonesia so far. This research aims to find out more about the impact of worsening corruption on foreign investment, the Rupiah exchange rate against the dollar, and economic growth. This research uses secondary data obtained from the central statistics agency for 16 years. Research data processing uses PLS. Based on the research results, it was found that the level of corruption affects the level of foreign investment and the Rupiah exchange rate against the Dollar but not economic growth. This research also found that foreign investment can mediate the relationship between the level of corruption and economic growth. In this research, it was found that the higher the level of corruption, the more foreign capital will enter. This is because countries with high levels of corruption have poor administrative systems so that by using bribes the investment process can run more easily. The greater the foreign capital that enters, the greater the capital in economic activities so that economic growth will increase. This is certainly not a good thing the Indonesian government needs to improve the quality of its bureaucracy so that corrupt practices do not get worse

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Published

2024-11-14

How to Cite

Rochdianingrum, W. A., Setyorini, N., & Amanah, L. (2024). DOES CORRUPTION HAS A POSITIVE IMPACT ON ECONOMIC GROWTH?. International Conference of Business and Social Sciences, 4(1), 538–551. https://doi.org/10.24034/icobuss.v4i1.535

Issue

Section

International Conference of Business and Social Sciences

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