Effect of perception of corruption on outward US Foreign Direct Investment
by Rajib Sanyal, Subarna Samanta
Global Business and Economics Review (GBER), Vol. 10, No. 1, 2008

Abstract: US Foreign Direct Investment (FDI) outflows are examined with respect to the level of corruption – in the form of bribery – in 42 recipient countries over a five-year period. Analysis indicates that US firms are less likely to invest in countries where bribery, as measured by the Corruption Perceptions Index (CPI), is widespread. However, the size of the foreign market is found to be a more robust factor determining US outward investment, with larger economies attracting more investment. The level of bribery, while significant by itself, loses its importance when included with other economic and cultural variables. The findings are discussed in the context of the Foreign Corrupt Practices Act (FCPA), which makes it illegal for US firms to bribe foreign officials to obtain business advantages.

Online publication date: Thu, 24-Jan-2008

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the Global Business and Economics Review (GBER):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com