The Effect of FDI and Corruption to Human Development in OIC Countries

Abstract

This study aims to see the direct and indirect effect of FDI and corruption to Human Development in OIC Countries. Nine countries are selected representing the medium to very high human development category in OIC Countries (Egypt, Indonesia, Jordan, Malaysia, Morocco, Kazakhstan, Kyrgyzstan, Turkey, and Tunisia). Using a combination of path diagram and panel data analysis, the result of this research indicates corruption has both direct and indirect effect through economic growth to human development in 9 OIC countries, while economic growth and FDI restrictiveness have a direct effect.

Keywords: Foreign Direct Investment, Corruption, Human Development, OIC