Abstract

The study involved analyzing the causes and consequences of corruption in Vietnam. Some research findings were similar to those of other low- to middle-income countries. However, there were some differences since Vietnam was a socialist republic country. The study used regression analysis to determine the correlations between government expenditure, governance indicator and corruption as well as between corruption and the economic development in selected countries. Data gathered from various sources over 18 years, from 2000 to 2017, were used to answer the research questions. The study uses the corruption perception index and the shadow economy index as proxy variables of corruption. The study’s findings were then contributed to the corruption and economic development literature and used to propose a number of recommendations to policymakers and future researchers.