Dampak Korupsi Terhadap Pertumbuhan Ekonomi Daerah

Abstract

The research want to analysis about corruption impact to regional economic growth in Indonesia. The method of analysis use pooling data. Number of cross-section data are 33 provinces and times-series data are three years. The best model obtained from redundant fixed effect test and correlated random effects-Hausman test. The model used an estimation method in which the cross-section is none and the period is fixed. The proxy for corruption variable is CPI (corruption perception index) in which if CPI decrease so that the corruption increase. Based on regression result, corruption has negative significant to economic growth in Indonesia. Corruption become a grease of wheel for economics in Indonesia. It's means that corruption increases economic growth. In fact, there are ten provinces in which the CPI variable significant to economic growth. Two provinces have negatif significant and others positif significant to economic growth. If the ten provinces removed from regression, CPI becomes insignific ant. So, the ten provinces have big influence to Indonesia economics, especially in CPI variable