Theodore Byrley, Ph.D., Associate Professor of Economics and Finance
Date of Award
Applied Economics, M.A.
Economics and Finance Department
Xingwang Qian, Ph.D., Associate Professor of Economics and Finance
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William Ganley, Ph.D., Professor of Economics and Finance
Susan Davis, Ph.D., Associate Professor of Economics and Finance
In Asia, it is not clear whether governments can attract increased FDI by reducing corruption, or whether corruption is irrelevant to levels of GDP growth, especially if the mechanism of net domestic credit can be used to stimulate economic growth even in the absence of high levels of FDI. The purpose of this study is to examine the potentially distinct effects of both FDI and net domestic credit on economic growth, as well as the relationship between corruption and economic growth. This relationship is studied using ex post facto data from a sample of Asian countries from the years 1980-2012. Corruption is found to have no tangible influence on how GDP interacts with either FDI or domestic credit, nor is corruption found to be a significant predictor of GDP growth in its own right. The data indicates that Asian economies can get away with corruption, as in the South Korean model, without jeopardizing FDI, and that middle-of-the-road domestic credit policies ought to be avoided.
Mi, Meng, "Influence of Corruption, Foreign Direct Investment and Net Domestic Credit on Economic Growth" (2013). Applied Economics Theses. 6.