Ananta, Prayudha and Ezrien, Mohamad and Mohamed, Norhayati (2023) PUBLIC SPENDING, CORRUPTION, AND HUMAN DEVELOPMENT: EMPIRICAL EVIDENCE IN MIDDLE-INCOME COUNTRIES. Building a Sustainable Future: Fostering Synergy Between Technology, Business, and Humanity. pp. 561-579. ISSN 2357-1330

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Abstract

This study investigates the role of corruption in the relationship between public spending and human development in Middle-Income Countries from 2012 until 2019. By using dynamic panel data with TwoStep System GMM, we examine the moderating effect of corruption in the relationship between public spending on health and public spending on education into human development. We find that in the aggregated Middle-Income Countries, the interaction between corruption-public spending on health and corruption-public spending on education significantly weakens human development. Furthermore, we also checked the income sub-level of Middle-Income Countries. There are different findings between Upper Middle-Income Countries and Lower Middle-Income Countries. In Upper Middle-Income Countries, the interaction between corruption and public spending on health has a negative and significant effect on human development, while interaction between corruption and public spending on education is negative but insignificant. In Lower Middle-Income Countries, interaction between corruption and public spending on health is negative and insignificant, while interaction between corruption and public spending on education is positive and significant.

Item Type:	Article
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HC Economic History and Conditions
Divisions:	Fakultas Ekonomi dan Bisnis (FEB) > Prodi Ekonomi Pembangunan
Depositing User:	Prayudha Ananta
Date Deposited:	21 Jun 2024 02:16
Last Modified:	21 Jun 2024 02:16
URI:	http://repository.lppm.unila.ac.id/id/eprint/53777

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