Judul: Dampak Korupsi Terhadap Produktivitas di Negara-Negara Middle-Income Trap
Abstrak: In recent decades, many developing nations have experienced rapid economic growth. However, since 1980, this growth has stalled due to challenges in competing with the low labor costs in Low-Income Countries (LICs) and the superior economic knowledge and high-quality institutions in High-Income Countries (HICs), as highlighted by Garret (2004). Gill and Kharas (2007) characterize this phenomenon as the Middle-Income Trap (MIT). Getting stuck in the middle-income category poses difficulties; as noted by Paus (2017), a slowdown in growth for MIT countries can hinder the potential improvement of citizens' living standards. While solutions for escaping the MIT are multifaceted, numerous studies underscore the crucial role of institutions or government intervention in breaking free from this trap (Kahras & Kohli, 2011; Tran, 2013; Larson et al., 2016; Melguizo et al., 2017; Acheampong & Udvaru, 2020; Leven, 2020; Besco et al., 2021). Meanwhile, corruption presents a notable institutional obstacle hindering economic advancement (Mo, 2001; World Bank, 2022). Despite extensive research exploring the link between corruption and economic growth, there is a scarcity of studies specifically examining these relationships within the Middle-Income Trap (MIT) context. Additionally, existing studies have predominantly concentrated on the impact of corruption on investment or economic growth, but contemporary literature on economic growth emphasizes the more substantial role played by productivity (Caselli, 2005; Easterly & Levine, 2001). Consequently, this study aims to address this research gap by examining how corruption influences a country's productivity, as measured by total factor productivity (TFP). In general, there are three main objectives of this research. Firstly, to describe the characteristics of corruption and Total Factor Productivity (TFP) in countries associated with MIT. The second objective is to investigate the impact of corruption on TFP, while the third objective is to compare these impacts based on regions and income groups. The research methodology employed to address the first research objective is descriptive analysis. Meanwhile, to address the second and third research objectives, panel data regression analysis is utilized. This study utilizes panel data covering 50 countries confirmed to be associated with MIT based on various definitions in Pruchnik and Zowczak (2017), spanning from 2003 to 2019. The primary findings can be summarized as follows. Firstly, corruption significantly hampers productivity in countries ensnared in the Middle-Income Trap (MIT). According to the fixed-effect model's regression coefficient, a 1% increase in corruption growth is predicted to decrease productivity growth by 0.02%. This finding supports the "sand on the wheel" hypothesis, which asserts that corruption has a negative impact on the economy. Secondly, based on the estimated value of Total Factor Productivity (TFP) growth, China stands out as having the most substantial likelihood of breaking free from the MIT compared to the other countries examined in this study. Thirdly, the adverse impact of corruption on productivity remains consistent across various regions and income groups. However, the statistically significant effect is specifically observed in the Middle East, North Africa, and Lower-Middle-Income countries. Lastly, this research posits that eliminating corruption is the key to enhancing a country's productivity and escaping the Middle-Income Trap., Dalam beberapa dekade terakhir, banyak negara berkembang mengalami pertumbuhan ekonomi
Keyword: corruption, productivity, middle-income trap