Research Article
Shadows of Influence: Money Laundering, Corruption, Black Market and Socio-economic Development Worldwide: A PLS-SEM Analysis
Rizwan Ahmad*
,
Muhammad Nauman
Issue:
Volume 7, Issue 1, March 2026
Pages:
1-23
Received:
19 August 2025
Accepted:
3 September 2025
Published:
9 March 2026
Abstract: The intricacies surrounding the measurement and modelling of money laundering (ML), corruption (COR), and black-market prevalence (BMP), as well as their effects on socio-economic development (SD), introduce significant challenges to accurately capturing and understanding these phenomena. There is a plethora of theories on individual measurements of each concept, but regrettably, they are not immune to criticism, and no such explicit approach is available to study the nexus between these complex concepts. The current study employs the multiple indicator approach to measure ML, COR, and SD, and utilizes the PLS-SEM approach to explore the relationships between these complex concepts, with a focus on the mediating role of the BMP. The per capita investment (PCI) expenditures, modelled through the multiple indicator approach, have been used as the control variables. The study has adopted a data-driven approach to conduct pre- and post-estimation analysis for the constructs and validate the results for a cross-section of 198 countries in 2022. The results indicate that the impact of corruption on socio-economic development is negative and statistically significant. The black market has a direct, negative, and significant impact on socio-economic development; similarly, the BMP has a positive and significant effect on ML. In addition to the direct impact on socio-economic development, BMP also indirectly affects SED through the ML. The direct effects of ML on SED are adverse, while it has an indirect positive impact on SED through its significant multiplier effect on per capita investment. These findings have implications for anti-money laundering and anti-corruption policies worldwide.
Abstract: The intricacies surrounding the measurement and modelling of money laundering (ML), corruption (COR), and black-market prevalence (BMP), as well as their effects on socio-economic development (SD), introduce significant challenges to accurately capturing and understanding these phenomena. There is a plethora of theories on individual measurements o...
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Research Article
The Influence of Foreign Direct Investment on Employment Development in Cambodia: A Lens on Manufacturing Industry
Issue:
Volume 7, Issue 1, March 2026
Pages:
24-37
Received:
18 February 2026
Accepted:
2 March 2026
Published:
14 March 2026
DOI:
10.11648/j.rd.20260701.12
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Views:
Abstract: This study quantitatively analyzes the influence of Foreign Direct Investment (FDI) on employment development in Cambodia’s manufacturing sector, focusing on garments (CG), food processing (CF), and electrical/electronic assembly (CE) industries. It addresses three primary objectives: evaluating the extent to which FDI generates employment opportunities for local Cambodians, identifying the specific employment benefits derived from these investments, and examining the required qualifications and mechanisms of skill transfer within FDI-invested industries. Building on Kokko’s FDI spillover theory in 1992, this study utilized firm-level survey data (n=101) collected via proportional stratified sampling. Firms were categorized into three regions such as capital, border, and sea-port, based on economic corridors. The findings reveal that FDI drove significant employment growth (grew by 315% for all job classifications: general workers, operators, supervisors, technicians, and higher management), with CE and CG sectors outperforming CF. Wages exceeded national minimums across all job classifications, and robust non-monetary benefits (healthcare, accommodation) were prevalent. However, knowledge transfer was uneven: higher-level roles (technicians, management) received industry-specific technical training, while general workers saw limited skill development. Notwithstanding FDI's demonstrable positive impact on employment generation, the analysis identifies structural constraints, notably skills shortages and wage-productivity divergence. Mitigating these requires prioritized investment in TVET systems and institutionalized tripartite coordination for sustainable industrial development.
Abstract: This study quantitatively analyzes the influence of Foreign Direct Investment (FDI) on employment development in Cambodia’s manufacturing sector, focusing on garments (CG), food processing (CF), and electrical/electronic assembly (CE) industries. It addresses three primary objectives: evaluating the extent to which FDI generates employment opportun...
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