Dynamic Analysis Of Corruption, Economic Growth, Income Inequality, And Human Development Index (HDI) In Asean Countries: A Vector Autoregressive (VAR) Approach

This study examines the dynamic relationships between economic growth, inequality, Human Development Index (HDI), and corruption in a panel of selected countries over a specified period. Using a Panel Vector Autoregressive (pVAR) approach, the findings reveal significant interactions between these variables, particularly highlighting the influence of inequality and HDI on economic growth. Variance decomposition analysis further demonstrates the increasing role of social factors in explaining economic fluctuations. Despite its insightful contributions, the study acknowledges limitations such as its reliance on linear models and the specificity of its context. The results suggest that policymakers should prioritize reducing inequality, enhancing human capital, and curbing corruption to foster sustainable economic growth. Future research should explore non-linear relationships and cross-country comparisons to deepen the understanding of these dynamics.