Exploring the Nexus between Foreign Aid, Corruption and Economic Growth in ASEAN Countries

The prime objective of the research is to explore the nexus between foreign aid, corruption and economic growth in ASEAN countries. The present research begins by providing background information about corruption as well as its current situation in ASEAN. Afterwards, the previous models used in previous research will be explored, followed by the discussion of data and estimation techniques. Moreover, the next section involves a discussion about the theoretical foundation of corruption models, and present estimation equations, data sources and mathematical derivations. In addition, the current study may also facilitate in spreading awareness regarding corruption and possible policy options for the policy makers to combat corruption in ASEAN. The study has employed a robust statistical analysis on the data covering period from 1985 to 2018. The fixed effect and Granger causality test are used to examine the relationship between foreign aid, corruption and economic growth. Finally, this paper aims to present a summary of the obtained empirical findings, policy implications, concluding remarks and future research direction. The study aims to particularly emphasise corruption’s indirect and direct effects on government expenditure, capital accumulation, economic growth and foreign aid