Sustaining Integrity: The Role of Education and Macroeconomic Variables for Corruption Eradication

Indah Susilowati, Andi Kurniawan Karta Negara, Muhammad Syariful Anam, Hizbul Khootimah Az Zaakiyyah, Ramadhanti Dara Sakinah, Aini Nur Furoida


This study aims to analyze the effect of education level and several macroeconomic variables on the corruption index in Asia-Pacific Economic Cooperation (APEC) member countries. This study uses the two-stage least square (2SLS) estimation method. This study found that the lifelong learning index, higher education participation, and foreign direct investment have a negative and significant effect on corruption in all APEC member countries and developing country members. Secondary education  and government efficiency index have a negative and significant effect on corruption in all  countries (all member states, developed and developing  countries). GDP per capita and economic openness have a positive and significant effect on corruption levels in APEC member states and developing countries. The fight against corruption must be immediately implemented as a political influence. Delaying this will reduce the effectiveness of future policies. Institutional reforms bring more positive benefits in countries that are really fighting corruption.


APEC; Corruption; Education; GDP; Macroeconomic

Full Text:



Acemoglu, D., & Verdier, T. (2000). The Choice Between Market Failures and Corruption. American Economic Review, 90(1), 194–211.

Ades, A., & Tella, R. di. (1997). The New Economics of Corruption: A Survey and some New Results. Political Studies, 45(3), 496–515.

Alt, J. E., & Lassen, D. D. (2008). Political and Juducial Checks on Corruption: Evidence from American State Governments. Economics & Politics, 20(1), 33–61.

Aracil, E., Gómez-Bengoechea, G., & Moreno-de-Tejada, O. (2022). Institutional quality and the financial inclusion-poverty alleviation link: Empirical evidence across countries. Borsa Istanbul Review, 22(1), 179–188.

Asongu, S. (2013). Fighting corruption in Africa: do existing corruption‐control levels matter? International Journal of Development Issues, 12(1), 36–52.

Asongu, S., & Nwachukwu, J. C. (2015). The incremental effect of education on corruption: evidence of synergy from lifelong learning. Economics Bulletin, 35(4), 2288–2308.

Beets, S. D. (2005). Understanding the Demand-Side Issues of International Corruption. Journal of Business Ethics, 57(1), 65–81.

Corrado, G., & Rossetti, F. (2018). Public corruption: A study across regions in Italy. Journal of Policy Modeling, 40(6), 1126–1139.

Elliott, K. A. (2017). Corruption as an International Policy Problem. In Political Corruption (3rd ed., pp. 925–942). Routledge.

Glaeser, E. L., & Saks, R. E. (2006). Corruption in America. Journal of Public Economics, 90(6–7), 1053–1072.

Gründler, K., & Potrafke, N. (2019). Corruption and economic growth: New empirical evidence. European Journal of Political Economy, 60, 1–14.

Gurgur, T., & Shah, A. (2014). Localization and Corruption: Panacea or Pandoras Box? Annals of Economics and Finance, 15(1), 109–136.

Hariyani, H. F., Priyarsono, D. S., & Asmara, A. (2016). Analisis Faktor-faktor yang Memengaruhi Korupsi di Kawasan Asia Pasifik. Jurnal Ekonomi Dan Kebijakan Pembangunan, 5(2), 32–44.

Harms, P., & Ursprung, H. W. (2002). Do civil and political repression really boost foreign direct investments? Economic Inquiry, 40(4), 651–663.

Jarmuzek, M., & Lybek, T. (2020). Can good governance lower bank intermediation costs? Applied Economics, 52(27), 2960–2976.

Jetter, M., & Parmeter, C. F. (2018). Sorting through global corruption determinants: Institutions and education matter – Not culture. World Development, 109, 279–294.

Jungo, J., Madaleno, M., & Botelho, A. (2023). Controlling corruption in African countries: innovation, financial inclusion and access to education as alternative measures. International Journal of Social Economics, 50(6), 766–786.

Kaffenberger, M. (2012). The Effect of Educational Attainment on Corruption Participation in Sub-Saharan Africa. Graduate School of Vanderbilt University.

Kim, S., Kim, H. J., & Lee, H. (2009). An institutional analysis of an e-government system for anti-corruption: The case of OPEN. Government Information Quarterly, 26(1), 42–50.

Kolstad, I., & Wiig, A. (2013). Digging in the dirt? Extractive industry FDI and corruption. Economics of Governance, 14(4), 369–383.

Lalountas, D. A., Manolas, G. A., & Vavouras, I. S. (2011). Corruption, globalization and development: How are these three phenomena related? Journal of Policy Modeling, 33(4), 636–648.

Larraín, F., & Tavares, J. (2004). Does Foreign Direct Investment Decrease Corruption? Cuadernos de Economía, 41(123), 217–230.

Liu, X. (2016). A Literature Review on the Definition of Corruption and Factors Affecting the Risk of Corruption. Open Journal of Social Sciences, 4(6), 171–177.

Máchová, R., Volejníková, J., & Lněnička, M. (2018). Impact of E-government Development on the Level of Corruption: Measuring the Effects of Related Indices in Time and Dimensions. Review of Economic Perspectives, 18(2), 99–121.

Malik, A. H., Jais, M. Bin, Md Isa, A. H., & Rehman, A. U. (2022). Role of social sustainability for financial inclusion and stability among Asian countries. International Journal of Social Economics, 49(9), 1324–1348.

Malik, S. (2023). Macroeconomic Determinants of Innovation: Evidence from Asian Countries. Global Business Review, 24(1), 137–151.

Maria, N. S. B., Susilowati, I., Fathoni, S., & Mafruhah, I. (2021). The Effect of Education and Macroeconomic Variables on Corruption Index in G20 Member Countries. Economies, 9(1), 1–13.

Marjit, S., Mandal, B., & Roy, S. (2014). Trade Openness, Corruption and Factor Abundance: Evidence from a Dynamic Panel. Review of Development Economics, 18(1), 45–58.

Mauro, P. (1995). Corruption and Growth. The Quarterly Journal of Economics, 110(3), 681–712.

Mengistu, A. A., & Adhikary, B. K. (2011). Does good governance matter for FDI inflows? Evidence from Asian economies. Asia Pacific Business Review, 17(3), 281–299.

Mo, P. H. (2001). Corruption and Economic Growth. Journal of Comparative Economics, 29(1), 66–79.

Mohamed, M. M. A., Liu, P., & Nie, G. (2022). Do Knowledge Economy Indicators Affect Economic Growth? Evidence from Developing Countries. Sustainability, 14(8), 1–37.

Montes, G. C., & Paschoal, P. C. (2016). Corruption: what are the effects on government effectiveness? Empirical evidence considering developed and developing countries. Applied Economics Letters, 23(2), 146–150.

Ozili, P. K., Lay, S. H., & Syed, A. A. (2023). Impact of financial inclusion on economic growth in secular and religious countries. Journal of Financial Regulation and Compliance, 31(4), 420–444.

Pellegrini, L., & Gerlagh, R. (2004). Corruption’s Effect on Growth and its Transmission Channels. Kyklos, 57(3), 429–456.

Rose-Ackerman, S. (1975). The economics of corruption. Journal of Public Economics, 4(2), 187–203.

Salem, N., & Hussein, S. (2019). Data dimensional reduction and principal components analysis. Procedia Computer Science, 163, 292–299.

Sharma, C., & Paramati, S. R. (2021). Does financial development reduce the level of corruption? Evidence from a global sample of 140 countries. International Journal of Finance & Economics, 26(4), 5093–5109.

Spyromitros, E., & Panagiotidis, M. (2022). The impact of corruption on economic growth in developing countries and a comparative analysis of corruption measurement indicators. Cogent Economics & Finance, 10(1), 1–30.

Šumah, Š. (2018). Corruption, Causes and Consequences. In V. Bobek (Ed.), Trade and Global Market. InTech.

Svensson, J. (2005). Eight Questions about Corruption. Journal of Economic Perspectives, 19(3), 19–42.

Tanzi, V., & Davoodi, H. (1997). Corruption, Public Investment, and Growth. In IMF Working Papers (1997/139).

Torrez, J. (2002). The effect of openness on corruption. The Journal of International Trade & Economic Development, 11(4), 387–403.

Wei, S.-J. (2000). Local Corruption and Global Capital Flows. Brookings Papers on Economic Activity, 2000(2), 303–354.

World Bank. (2023). World Bank Data. World Bank.



  • There are currently no refbacks.

ISSN (Print) 2086-1575       ISSN (Online) 2502-7115

View My Stats


Creative Commons License
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.