Host country corruption level and Foreign Direct Investments inflows Online publication date: Thu, 21-May-2009
by Albert Wijeweera, Brian Dollery
International Journal of Trade and Global Markets (IJTGM), Vol. 2, No. 2, 2009
Abstract: This paper investigates the effects of corruption on Foreign Direct Investment (FDI) inflows controlling other relevant determinants using a panel data approach for 45 countries over 1997-2004. Whereas economic theory suggests that corruption should discourage FDI, many notably corrupt countries receive substantial FDI – an anomaly worthy of investigation. In common with other empirical work, we find no statistically significant impact of corruption on FDI. This suggests that policies designed to attract additional foreign FDI should focus on other determinants of investment rather than on the intractable problem of reducing the level of corruption.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
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 International Journal of Trade and Global Markets (IJTGM):
Login with your Inderscience username and 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