Korupsi dan Pertumbuhan Ekonomi: Apakah korupsi melumasi atau mengamplas roda pembangunan di Indonesia?

Abstract

Corruption is a serious problem in economic development in many countries. Corruption can not only reduce the level of competitiveness of a country but also can cripple economic development. This study aims to analyze the effect of corruption on economic growth with control variables such as inflation and foreign investment (FDI). The research uses multiple linear regression analysis with a time range of 1995-2021.The results show that corruption has a negative and significant effect on economic growth. The results of this study support the Sand The Wheels Hypothesis (SWH) means that corruption can hamper the rate of economic growth in INDONESIA. While for the control variable foreign investment (FDI) has a positive and significant effect on economic growth in Indonesia. and Inflation variable has a negative and significant effect on economic growth in Indonesia. This research can provide a better understanding of the relationship between corruption and economic growth in Indonesia. The results can be used to enhance corruption eradication efforts and improve governance in Indonesia.