| dc.description.abstract | ASEAN has become the second largest regional power after the European Union. ASEAN's collective economic growth reached 7.5 percent, the flow of investment and human development which increased from year to year is the economic development and achievements of ASEAN during the crisis sweeping the world. But behind it all, there are internal problems that overshadow public sector ASEAN region, one of which is corruption. Corruption is the abuse of public office for private gain and causing high cost economy. This study analyzed the determinant of corruption and its impact on social welfare and investment in eight countries of ASEAN by using Panel Data Static. Factors that influence significantly positive effect on freedom from corruption is economic freedom, the quality of governance, GDP per capita and the dummy British colony. Political freedom (democracy) negative effect on corruption. Components of economic freedom and macroeconomic indicators that influence freedom from corruption was significantly and positively in business freedom, monetary freedom, private property rights, government spending and GDP per capita. Fiscal freedom has negative impact. Components of the quality of governance and political freedom (democracy) that positively affect the level of corruption is voice and accountability, political stability, regulatory quality, rule of law, corruption control, political freedoms, civil rights and freedoms. This study also empirically proves that corruption is significantly negative effect on social welfare (human development) and investment in ASEAN countries. Some suggestions from the macroeconomic indicators and economic freedom to reduce corruption is fundamentally strong political and social on freedom of business and investment freedom, oversight of using of public infrastructure development budgets, price controls, close supervision when a low level of tax, legal guarantees for private property rights, the government should work to improve people's living standards are reflected by an increase in GDP per capita. Suggestions of governance and democracy is maintain political stability, regulatory quality and attention to implementation mechanisms, strengthening and improving the quality of the rule of law and law enforcer, improve the control of corruption, guarantee public access to government information and freedom of the press by prohibiting censorship, and surveillance of democratic freedom to minimize potential adverse selection of public officials. | en |
