Effects of Corruption on Economic Growth - Empirical Study of Asia Countries

The paper is to analyze the impact of corruption on economic growth by using data of 19 Asian countries in the period of 2004-2015 with D-GMM data processing techniques and quantile regression. The study results show the corruption is a hindrance to economic growth of those Asian countries. In addition, economic growth is impacted by different levels of the corruption at different quantiles , specifically, at the quantile level from 0.1 and 0.5, corruption impacts positively on economic growth, or vice versa, from level of 0.75 and 0.90, it is negative. In addition, the result shows that institutional quality, democracy freedom and economic freedom play important roles in economic growth.