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IJSTR >> Volume 7 - Issue 12, December 2018 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

The Impact Of FDI, Human Capital, And Corruption On Growth In Asian Developed And Developing Countries

[Full Text]



Inma Fatmawati, Agus Suman, Wildan Syafitri



GDP, FDI, Human capital, Corruption, Developed and Developing Country, Panel Data



This study tries to prove the impact of FDI, human capital, and corruption on economic growth in Asian countries, especially for developed and developing countries. There are many studies that prove that FDI and human capital both partially and simultaneously are able to drive growth. Meanwhile, corruption theoretically has a negative impact on growth, but several other studies have proven that corruption in some ways can also drive growth. This study uses FDI data, School Enrollment Ratio Tertiary, and corruption taken from the Corruption Perception Index to determine the impact on growth from 2003-2015 using panel data analysis methods. The results show that in developed countries, FDI actually has a negative impact on growth. Unlike in developing countries, FDI inflows can help drive growth. Human capital has a positive impact on growth for developed and developing countries. But in developed countries, this impact is not significant. While the corruption variable provides results the increased CPI score means a country with less corruption has a positive impact on the increased economic growth.



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