| Summary: | 碩士 === 逢甲大學 === 財稅所 === 97 === Several cross-country studies have found that corruption is harmful to economic growth. However, regarding to corruption-economic growth nexus there are two schools keeping opposite views.
This paper adopting panel data and Panel vector autoregression model from 1995 to 2008 empirically investigates the effect of corruption on economic growth for Singapore, Hong Kong, Taiwan, and South Korea. Besides, we also estimate the economic growth fairly by utilizing the corruption perceptions index (CPI) of Transparency International and other economic variables, which include the index of economic freedom, investment rate, unemployment rate and growth rate of export, are used to estimate the economic growth.
Using empirical analysis, we found that corruption has a negative, statistically significant effect on economic growth rate. According to empirical result, if a country were to improve its score in the CPI by 1 point (out of 10), growth rate of per capita GDP would enhance by 5 percent. In addition, index of economic freedom and growth rate of export are significantly positive effect on economic growth. On the other hand, unemployment rate and investment rate are insignificant effect on economic growth, but not indicate unemployment rate and investment rate not relative to economic growth.
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