The Complex Nexus: Analyzing the Interplay of Economic Growth, Corruption, Foreign Direct Investment, and Institutions.

A significant component of economic growth (EG) is the enlightenment of the economy. Corruption slows down EG. Human civilization is influenced by corruption, a relic of an ancient occurrence in all countries worldwide. EG is negatively affected by corruption. In the presence of poor institutions, corruption slows the flow of foreign direct investment (FDI). In this analysis, FDI and institutions are studied using panel data. Drisc and Kraay and. fixed effects techniques are used to determine nexus. From 2005 to 2022, 53 developing countries are analyzed. EG is hindered by corruption, while FDIs boost it. In developing countries, more vital institutions contribute to decreasing EG. This suggests that countries should invest in developing strong economic and political institutions to benefit from FDI. Also, countries should focus on reducing corruption to encourage EG. Governments should also create incentives to attract FDI, such as lower taxes, improved infrastructure, and relaxed labor regulations. Finally, countries should put in place measures to protect FDI from political interference and instability. [ABSTRACT FROM AUTHOR]