Department Chair

Theodore Byrley, Ph.D., Associate Professor of Economics and Finance

Date of Award


Access Control

Open Access

Degree Name

Applied Economics, M.A.


Economics and Finance Department


Xingwang Qian, Ph.D., Associate Professor of Economics and Finance

Department Home page

First Reader

William Ganley, Ph.D., Professor of Economics and Finance

Second Reader

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.