| Summary: | Abstract. This thesis is aimed to analyze the impact of corruption on the poverty
in Indonesia by using the panel data from 30 provinces during the period of time
of 2001-2010. This study applies the method of random effect. The analysis is
focused on the objective measure of corruption, which is the number of corruption
cases that were found guilty based on the Supreme Court decisions, and the
measure of poverty level, which is the percentage of the poor. By using a linear
model, the empirical finding reveals that corruption has no significant effect on
the poverty in Indonesia. However, an additional analysis by using a quadratic
function for the variable of corruption reveals that the corruption has a significant
impact on the level of poverty, wherein the quadratic corruption value is positive
and significant. Finally, it can be concluded that the higher the level of corruption
is, the higher impact on the percentage of the poor will be.
|
|---|